Forte Oil Plc Sustains FREE-FALL Pattern as Sell-Down Persists, 64% Fall To Date

Proshare

Thursday, October 27, 2016 8:48 PM /securities@proshareng.com 

Today, the share price of Forte Oil Plc ended in the red zone to sustain the prolonged bearish outlook noticed in the stock as investors’ sentiments remain negative. 

The stock closed lower by -4.9% with a corresponding surge of 34% in bearish volume, extending the prolonged losing streak while it posted a 26.66% loss in its market value in just one month (30 days). This indicates an active sell-down tendency and falling investors loyalty towards the stock. 

 

An extended analysis revealed an active and prolonged sell-off pattern as investors continued to reduce their exposure to the stock.  

The security had lost 64.41% of its market value so far in the year 2016, to close amongst the worst performing stocks on the Nigerian bourse and within its sub-sector. 

Its market capitalisation has thus been depleted by N276.84billion so far in the year 2016, or 64% loss of total net worth. 

  

Further, sentiments analysis revealed a significant negative shift in investors’ loyalty and trading sentiments towards the security as it experienced a steep fall after thirty-seven (37) months active rally of 4324% to hit its record high of N342.00k from N7.73k.  

Instructively, the trend analysis on the stock further buttressed a sell-off pattern noted above as stock had breached its key support line at N152.00, trading at N117.45 far below its 50% Fibonacci retracement level (N174.30).  

The stock is thus technically trading below all its Fibonacci retracement points, which further suggests an active sell-off propensity.  

Conclusively, we expect the stock, while trading within an extreme oversold region, to defend its last support level at N82.43kobo.  

A trade below this level may drive stock to N40.00 -N17.00 range as indicated by our analysis. 

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