Sunday, December 18, 2016/Proshare Research
Analysis of the market activity in the week ended December 16, 2016 technically revealed growing optimistic trading pattern while investors displayed improved bargain hunting in the week.
Also, an extensive analysis revealed strong accumulation pattern while investors maintained ‘buy and hold’ postures, particularly in Financial Services, Agriculture and Consumer Goods sectors.
In addition, volume analysis revealed active bargain tendency towards UBN, GUARANTY, ETI, HONYFLOUR and LIVESTOCK while investors sustained sell postures towards DANGFLOUR, OANDO, CADBURY and MOBIL.
Furthermore, investors displayed fresh and sustained bargain tendency in some active sector(s), particularly in Consumer Goods, Healthcare, Agriculture and Financial Services sector(s). However, we observed fresh and growing sell tendency in Services, and Industrial Goods sector(s).
Summarily, the bulls dominated the week, strengthening the key benchmark index by 889.41 points against 76.86 gain recorded in the previous week to close at 26,707.10- ASI remains battered below its key resistance level at 41,957.50.
In addition, the All Share Index traded within the range of 26,707.10 (week-high) and 26,071.16 (week-low) to settle at 26,707.10 - above previous week’s high (25,817.69) by 889.41- This indicates sustained bargain sentiments when compared with previous posture. The outlook reveals growing bargain postures.
In the week just ended, market breadth closed positive at 2.06x against 0.81x recorded in the previous week on the back of growing bargain sentiments.
Likely trends in the coming periods: We expect speculative trading to gain tempo in the coming week, considering the RSI at the overbought threshold, which may incite a moderate pull-back anytime soon.
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 Financial Services, Agriculture, Healthcare, Construction/Real Estate, Consumer Goods, Conglomerates and Oil & Gas 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, Services and Industrial Goods
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
UBN experienced moderate bargain tendency to close with positive sentiments in the week. The stock recorded +2.00% gain in the week against -0.20% loss recorded in the previous week.
The outlook in the week revealed sustained low bargain pattern in the last 16weeks to record +11.22% gain experienced between August 26th and December 16th 2016
In addition, technical indicator (MACD) revealed moderate bargain sentiments towards the stock while RSI and CCI revealed improved price momentum. The stock closed neutral in both short-term and mid-long term periods, indicating improved presence of bulls towards the stock as revealed by its price moving averages.
Also, we observed a significant growth in bullish volume during the week, indicating active accumulation from investors during the week.
Technical conclusion on sentiments: The stock has low chance, with low reliability to extend uptrend pattern in the coming session, considering the improved demand postures. A Buy Signal! Chart below shows MACD, candlestick, RSI and volume analysis
ETI experienced active bargain tendency to close with positive sentiments in the week. The stock recorded +21.10% gain in the week against +0.70% gain recorded in the previous week.
The outlook in the week revealed a price recovery pattern in the last 3weeks to record +26.74% gain, following a prolonged 25weeks sell-down of 47.37% experienced between May 27th and November 11th 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 short-term but remained neutral in mid-long term periods, indicating growing 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. A Buy Signal! Chart below shows MACD, candlestick, RSI and volume analysis
NILEVER experienced moderate sell tendency to close with negative sentiments in the week. The stock recorded -12.10% loss in the week against -6.30% loss recorded in the previous week.
The outlook in the week revealed a sustained price correction pattern towards the stock in the last 7weeks to -20.87% loss, following an active 35 weeks rally of +81.82%, experienced between March 11th and November 4th 2016.
Technical indicator (MACD) revealed active sell-down trend with a huge fall in price momentum while the stock closed bearish in short-term but remained neutral in mid-long term periods. This indicates growing presence of bears towards the stock.
Technical conclusion on sentiments: The stock has low chance, with low reliability, to extend the downtrend in the coming sessions, considering the growing sell momentum, coupled with the lower breakout observed in the last session. 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.