Sunday, Jan 01, 2017/Proshare Research
Analysis of the market activity in the week ended December 30, 2016 technically revealed improved optimistic trading pattern while investors displayed active value investing approach in the week.
Also, an extensive analysis revealed improved accumulation pattern while investors remained value driven, particularly in Financial Services, Consumer Goods and Conglomerates sectors.
In addition, volume analysis revealed active bargain tendency towards GUARANTY, NEM, NPFMCRFBK and FCMB while investors sustained sell postures towards TRANSCORP, FBNH, STERLNBANK and BETAGLAS.
Furthermore, investors displayed fresh and sustained bargain tendency in some active sector(s), particularly in Consumer Goods, Agriculture, Construction/Real Estate and Financial Services sector(s). However, we observed fresh sell tendency in Industrial Goods and Oil & Gassector(s).
Summarily, the bulls dominated the week, strenghtening the key benchmark index by 402.84 points against 235.32 loss recorded in the previous week to close at 26,874.68- 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 26,874.62 (week-high) and 26,688.25 (week-low) to settle at 26,874.62 - above previous week’s high (26,586.56) by 288.06- This indicates active bargain sentiments when compared with previous posture. The outlook reveals growing bargain postures.
In the week just ended, market breadth closed positive at 1.65x against 1.15x recorded in the previous week on the back of improved bargain sentiments.
Likely trends in the coming periods: We expect January-Effect to aid trading pattern while investors would remain value-driven in the coming week.
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, Agriculture, Conglomerates, Services, Financial Services, Consumer Goods and Healthcare 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, Industrial Goods and Oil & Gas
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
GUARANTY experienced moderate bargain tendency to close with positive sentiments in the week. The stock recorded +5.40% gain in the week against -8.10% loss recorded in the previous week.
The outlook in the week revealed a sustained price recovery trend on the back of improved bargain pattern in the week, following active speculative and volatile period to record -22.37% loss experienced between September 16th and November 18th 2016.
In addition, technical indicator (MACD) revealed moderate bargain sentiments towards the stock while RSI and CCI revealed improved price momentum. The stock closed bullish in short-term but remained neutral in mid-long term period, indicating improved presence of bulls towards the stock as revealed by its price moving averages
Also, we observed a modest 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 observed in the week. A Cautious Signal! Chart below shows MACD, candlestick, RSI and volume analysis
LAWUNION experienced active bargain tendency to close with positive sentiments in the week. The stock recorded +19.40% gain in the week against flat position recorded in the previous week.
The outlook in the week revealed a fresh optimism and price recovery, following 10weeks moderate sell-down of 8.00% experienced between September 30th 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 bullish in both short-term and 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
FO experienced moderate sell tendency to close with negative sentiments in the week. The stock recorded -18.7% loss in the week against -10.60% Loss recorded in the previous week.
The outlook in the week revealed a sustained price correction pattern towards the stock in the last 2 weeks to recorded 27.37% loss, following 3weeks rally of +85.10%, experienced between November 25th 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 both short-term and mid-long term period. This indicates sustained 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 pressure 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.