Sunday, Jan 15, 2017/Proshare Research
Analysis of the market activity in the week ended January 13, 2017 technically revealed a sustained cautious trading pattern while investors remained value-driven in the week.
Also, an extensive analysis revealed continued opportunistic buying and accumulation pattern while investors remained cautiously optimistic, particularly in Financial Services and Agriculture sectors.
In addition, volume analysis revealed active bargain tendency towards DIAMONDBNK, OANDO, CONTINSURE and AIRSERVICE while investors displayed sell postures towards TRANSCORP, UBN, FIDSON and MANSARD.
Furthermore, investors displayed fresh and sustained bargain tendency in some active sector(s), particularly in Agriculture, Financial Services and Services sector(s). However, we observed fresh and sustained sell tendency in Healthcare and Conglomerates, Consumer Goods and Industrial Goods sector(s).
Summarily, the bulls dominated the week, strenghtening the key benchmark index by 74.54 points against 623.23 loss recorded in the previous week to close at 26,325.93- 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 26.580.22 (week-high) and 26,251.39 (week-low) to settle at 26,325.93 - above previous week’s low (26,212.09) by 113.84- This indicates improved bargain sentiments when compared with previous posture. The outlook reveals moderate postures.
In the week just ended, market breadth closed negative at 0.72x against 0.75x recorded in the previous week on the back of weak bargain sentiments.
Likely trends in the coming periods: We expect speculative tendency to remain active 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 Agriculture, Services 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, Oil & Gas, Healthcare, Conglomerates, Consumer Goods, Industrial Goods and Construction or Real Estate
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
FIDELITYBK experienced moderate bargain tendency to close with positive sentiments in the week. The stock recorded +8.40% gain in the week against -1.20% loss recorded in the previous week.
The outlook in the week revealed a sustained price recovery pattern on the back of sustained moderate bargain tendency to record +18.42% gain in the last 8weeks, following a prolonged sell-down of -45.71% loss experienced between May 27th and November 16th 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 last trading session. A Buy Signal! Chart below shows MACD, candlestick, RSI and volume analysis
DIAMONDBNK experienced active bargain tendency to close with positive sentiments in the week. The stock recorded +23.30% gain in the week against +2.30% gain recorded in the previous week.
The outlook in the week revealed a fresh price recovery pattern, following 27weeks moderate sell-down of -62.03% experienced between July 1st 2016 and January 6th 2017.
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 short-term but remained neutral 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 low reliability to extend uptrend in the coming session, considering the growing bargain tendency and upper breakout observed during last session. A Buy Signal! Chart below shows MACD, candlestick, RSI and volume analysis
CUTIX experienced active sell tendency to close with negative sentiments in the week. The stock recorded -18.00% loss in the week against flat position recorded in the previous week.
The outlook in the week revealed a fresh active sell-down tendency and continued price correction pattern towards the stock in the week, following a prolonged (12weks) flat posture, experienced between October 12th 2016 and January 6th 2017.
Technical indicator (MACD) revealed active sell-down trend with a sharp fall in price momentum while the stock closed bearish in short-term and remained neutral in mid-long term period. This indicates growing presence of bears towards the stock.
Technical conclusion on sentiments: The stock has moderate chance, with moderate reliability, to extend the downtrend in the coming sessions, considering the growing sell pressure and lower breakout 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