Sunday, December 25, 2016/Proshare Research
Analysis of the market activity in the week ended December 23, 2016 technically revealed moderate speculative tendency and price correction pattern while short-term investors booked modest profit in the week.
Also, an extensive analysis revealed moderate growth in distribution pattern while investors maintained sell-down postures, particularly in Services, Agriculture and Consumer Goods sectors.
In addition, volume analysis revealed active bargain tendency towards STERLNBANK, NEIMETH, WAPCO, and DIAMONDBNK while investors sustained sell postures towards CADBURY, GUARANTY, UNILEVER and HONYFLOUR.
Furthermore, investors displayed fresh and sustained bargain tendency in some active sector(s), particularly in Industrial Goods, Oil & Gas, Financial Services and Conglomerates sector(s). However, we observed fresh and growing sell tendency in Services, Agriculture and Consumer Goodssector(s).
Summarily, the bears dominated the week, depressing the key benchmark index by 235.32 points against 889.41 gain recorded in the previous week to close at 26,471.78- ASI remains battered below its key resistance level at 31,071.25, recorded on 26th June 2016.
In addition, the All Share Index traded within the range of 26,586.56 (week-high) and 26,418.11 (week-low) to settle at 26,471.78 - below previous week’s high (26,707.10) by 235.32- This indicates weak bargain sentiments when compared with previous posture. The outlook reveals waning bargain postures.
In the week just ended, market breadth closed positive at 1.15x against 2.06x recorded in the previous week on the back of waning bargain sentiments.
Likely trends in the coming periods: We expect speculative tendency to continue to dictate trading pattern in the coming week. Though, with improved accumulation as December effect is likely to tilt the scale.
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 Construction/Real Estate, Industrial Goods, Conglomerates, Healthcare, Oil & Gas 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, Services, Agriculture and Consumer 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
NASCON experienced moderate bargain tendency to close with positive sentiments in the week. The stock recorded +7.90% gain in the week against +2.90% gain recorded in the previous week.
The outlook in the week revealed sustained moderate bargain pattern in the last 4weeks to record +13.53% gain experienced between December 2nd and December 23rd 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 short-term but remained bearish in mid-long term period, 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 weak demand postures observed in the last trading session. A Cautious Signal! Chart below shows MACD, candlestick, RSI and volume analysis
STERLNBANK experienced active bargain tendency to close with positive sentiments in the week. The stock recorded +18.10% gain in the week against +2.90% gain recorded in the previous week.
The outlook in the week revealed a price recovery pattern in the last 2weeks to record +21.43% gain, following a prolonged 30weeks sell-down of 60.00% experienced between May 13th and December 19th 2016.
In addition, technical indicator (MACD) revealed active bargain tendency towards the stock as RSI and CCI revealed sharp uptrend 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.
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
HONYFLOUR experienced moderate sell tendency to close with negative sentiments in the week. The stock recorded -6.8% loss in the week against +24.50% gain recorded in the previous week.
The outlook in the week revealed a price correction pattern towards the stock in the week, following 2weeks rally of +34.69%, experienced between December 2nd and December 16th 2016.
Technical indicator (MACD) revealed moderate sell-down trend with a sharp fall in price momentum while the stock closed neutral in mid-long term but remained bullish in short-term period. This indicates sustained presence of bulls but weak control.
Technical conclusion on sentiments: The stock has low chance, with low reliability, to reverse the downtrend in the coming sessions, considering the indecision in bears’ camp. A Cautious Signal! Chart below shows MACD, candlestick, RSI and volume Analysis
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