Sunday, November 20, 2016/Proshare Research
Analysis of the market activity in the week ended November 18, 2016 technically revealed strong bearish tendency while investors remained wary towards investment in equities.
Also, an extensive analysis revealed a sustained and growing distribution pattern while investors displayed low risk appetite, particularly in Conglomerates, Oil & Gas and Financial Services sectors.
In addition, volume analysis revealed active sell tendency towards TRANSCORP, DIAMONDBNK, ETERNA and WEMABANK while investors displayed modest bargain postures towards ACCESS, MAYBAKER, ETI and DANGSUGAR.
Nonetheless, investors displayed fresh and growing sell tendency in some active sector(s), particularly in Healthcare. Industrial Goods, Oil & Gas and Conglomerates sector(s). However, we observed growing buy tendency in Services.
Summarily, the bears dominated the week, depressing the key benchmark index by 633.34 points against 810.72 loss recorded in the previous week to close at 25,537.54- ASI remains battered below its key resistance level at 41,957.50.
In addition, the All Share Index traded within the range of 25,986.81 (week-high) and 25,537.54 (week-low) to settle at 25,537.54- below previous week’s low (26,170.88) by 633.34- This indicates growing sell sentiments when compared with previous posture. The outlook reveals active sell postures.
In the week just ended, market breadth closed negative at 0.29x against 0.50x recorded in the previous week on the back of negative sentiments.
Likely trends in the coming periods: We expect mixed sentiments to persist as Market RSI revealed significant decline in bargain strenght. However, the extreme oversold posture of market may incite opportunistic buying.
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 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, Healthcare, Agriculture, Consumer Goods, Financial Services, Industrial Goods, Conglomerates 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
NAHCO experienced moderate bargain tendency to close with positive sentiments in the week. The stock recorded +1.70% gain in the week against -14.20% loss recorded in the previous week.
The outlook in the week revealed a price recovery pattern with low-key bargain tendency, after a prolonged sell-down pattern in the last 24weeks to record -57.33% loss experienced between May 27th and November 11th 2016
In addition, technical indicator (MACD) revealed waning sell sentiments towards the stock while RSI and CCI revealed improved price momentum. The stock closed bearish in both short-term and mid-long term periods, indicating growing presence of bears 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 weak bargain tendency. A Buy Signal! Chart below shows MACD, candlestick, RSI and volume analysis
MAYBAKER experienced moderate bargain tendency to close with positive sentiments in the week. The stock recorded +12.90% gain in the week against -3.40% loss recorded in the previous week.
The outlook in the week revealed a fresh bargain tendency, following prolonged bearish run in the last 18weeks to record -29.17% loss, experienced between July 15th 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 neutral in short-term but remained bearish in mid-long term periods, indicating improved 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 coupled with upper breakout observed in the week. A Buy Signal! Chart below shows MACD, candlestick, RSI and volume analysis
TRANSCORP experienced active sell tendency to close with negative sentiments in the week. The stock recorded -18.60% loss in the week against -6.50% 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 21 weeks to record 57.00% loss, following 8weeks active rally of +102.20% experienced between April 29th and June 24th 2016.
Technical indicator (MACD) revealed active sell-down trend with a sharp 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 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.