Monday, July 25, 2016 3.38 PM / Proshare Markets
Positive breakout stocks are sets of securities that are recording growing patronages as both investors and traders are willing to increase risk appetite and exposure accordingly.
The sustained price correction on the Nigerian bourse continues to gain tempo as daily average loss in the last 11days moved up to 0.90% from 0.55% recorded in the previous session- This has put Month-to-date loss at -4.65% as at end of July 19, 2016 trading session.
The trading pattern so far reflects a profit-taking tendency, following an impressive rally of 16.96% market experienced in Q2'16. Also, the recent unimpressive inflation figures could not be isolated from this pattern as investors had recently displayed increased cautious trading towards equities on the back of bleak economic outlook.
However, in the face of sustained negative sentiments in the recent two weeks, there are few resilient stocks that are recording improved patronages, trading above their key moving averages of 15DMA, 30DMA 45DMA and 100DMA. Technically, these stocks remain bullish in both short and mid-long term periods with a breakout postures. Below are the sets of stocks that broke above its key moving averages as at July 19, 2016.
Technically, this suggests that investors are willing to increase risk appetite towards the above listed stocks despite the on-going sell-down on the bourse as technical analysis had indicated
On the other hand, technical analysis revealed the set of stocks that are currently experiencing increased sell-down pressure as investors had consistently sustained bearish sentiments towards them in the recent time. The stocks had technically recorded negative breakout, trading below all key moving averages of 15DMA, 30DMA, 45DMA and 100DMA.
This further suggests that investors have bearish bias towards these stocks – both investors and traders are not willing to increase exposure on these set of stocks for now as they consider them fairly over-valued at the current market price.