Sunday, December 04, 2016/Proshare Research
Analysis of the market activity in the week ended December 02, 2016 technically revealed renewed optimism while investors displayed active bargain hunting towards weathered stocks.
Also, an extensive analysis revealed a active accumulation pattern while investors displayed improved risk appetite, particularly in Financial Services, Oil & Gas and Industrial Goods sectors.
In addition, volume analysis revealed active bargain tendency towards WEMABANK, GUARANTY, OANDO and FO while investors sustained sell postures towards UNITYBNK, FCMB, DIAMONDBNK and NASCON.
However, investors displayed fresh and sustained bargain tendency in some active sector(s), particularly in Oil & Gas, Industrial Goods and Financial Services sector(s). However, we observed fresh and growing sell tendency in Conglomerates, Healthcare, Agriculture, Construction/Real Estate and Services sector(s).
Summarily, the bulls dominated the week, strengthening the key benchmark index by 407.44 points against 204.15 loss recorded in the previous week to close at 25,740.83- ASI remains battered below its key resistance level at 41,957.50.
In addition, the All Share Index traded within the range of 25,740.83 (week-high) and 25,233.42 (week-low) to settle at 25,740.83 - above previous week’s high (25,517.00) by 223.83- This indicates renewed bargain sentiments when compared with previous posture. The outlook reveals active bargain postures.
In the week just ended, market breadth closed positive at 1.04x against 1.00x recorded in the previous week on the back of growing bargain sentiments.
Likely trends in the coming periods: We expect the renewed optimism to extend as Market RSI revealed a steep uptick in bargain strenght.
Technically, market sentiments during the bearish week favoured liquid and active stocks of Medium Cap categories in the sector(s) but with stronger positive sentiments in Oil & Gas, Industrial Goods and Financial Services sector(s), which further revealed the sector(s) investors patronised in the week.
On the other hand, it was observed that negative sentiments appeared stronger in, Conglomerates, Agriculture, Consumer Goods, Construction/Real Estate, Services and Healthcare
Stock Trend & Direction
We conducted a review of stocks that have sharpened market direction and performance in the week - using technical tools like RSI, MACD, VOLUME, MFI, CANDLESTICK, MOVING AVERAGES, BOLLIGER BANDS and ACCUMULATION & DISTRIBUTION to reveal investors’ sentiments towards the market movers.
THE BIG VOLUME
WEMABANK experienced moderate bargain tendency to close with positive sentiments in the week. The stock recorded +9.60% gain in the week against -5.50% loss recorded in the previous week.
The outlook in the week revealed a fresh price recovery pattern with moderate bargain tendency, after a prolonged 40weeks sell-down trading pattern to record -48.00% loss experienced between February 26th and November 25th 2016
In addition, technical indicator (MACD) revealed improved modest bargain sentiments towards the stock while RSI and CCI revealed improved price momentum. The stock closed neutral in short-term but remained bearish in mid-long term periods, indicating growing presence of bulls towards the stock as revealed by its price moving averages.
Also, we observed moderate growth in bullish volume during the week, indicating modest accumulation from investors during the week.
Technical conclusion on sentiments: The stock has low chance, with low reliability to sustain uptrend pattern in the coming session, considering improved bargain tendency. A Buy Signal! Chart below shows MACD, candlestick, RSI and volume analysis
MOBIL experienced active bargain tendency to close with positive sentiments in the week. The stock recorded +55.10% gain in the week against +7.20% gain recorded in the previous week.
The outlook in the week revealed a sustained bargain tendency in the last 14weeks to record +99.28% gain, experienced between August 26th and December 2nd 2016.
In addition, technical indicator (MACD) revealed active bargain tendency towards the stock as RSI and CCI revealed sharp uptrend momentum. The stock closed bullish in both short-term and mid-long term periods, indicating active presence of bulls towards the stock as revealed by its price moving averages.
Technical conclusion on sentiments: The stock has moderate chance, with moderate reliability to extend uptrend in the coming session, considering the active demand postures and upper breakout observed during last session. However, the extreme overbought posture of price may incite price correction soon. A Cautious Signal! Chart below shows MACD, candlestick, RSI and volume analysis
CCNN experienced active sell tendency to close with negative sentiments in the week. The stock recorded -9.60% loss in the week against -0.00% loss recorded in the previous week.
The outlook in the week revealed a sustained and growing sell-down tendency towards the stock in the last 48 weeks to record 59.90% loss, following 4weeks active rally of +36.49% experienced between December 11th 2015 and January 8th 2016.
Technical indicator (MACD) revealed active sell-down trend with a huge fall in price momentum while the stock closed bearish in both short-term and mid-long term periods. This indicates growing presence of the bears towards the stock.
Technical conclusion on sentiments: The stock has moderate chance, with moderate reliability, to sustain the sell sentiments in coming sessions, considering the active sell momentum and the lower breakout experienced during the week. However, the extreme oversold posture of the stock may incite speculative trading soon. A Cautious Signal! Chart below shows MACD, candlestick, RSI and volume Analysis
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Disclaimer: The information provided herein is our opinion only. Under no circumstances do any statements here represent a recommendation to buy or sell your stocks or make any kind of an investment. You are responsible for your own due diligence. To summarize, we do not provide recommendations nor do we make any claims or promises that any information here will lead to a profit, loss or any other result. They are for your guidance purpose only.