Monday, August 05, 2019 / 11:00AM / By
Market Last Week (Our Observation)
Market This Week (Our Expectations)
Weekly Stock Watch for Technical
Market Analysis… NSE ASI Sides with the Bears
The NSE All Share Index declined 100bps to print at 27,630.5
points. As has been the case recently, the Negative Directional Movement Index
(-DMI) is not only outstripping the Positive Directional Movement Index (+DMI),
it also continues to display a super strong ADX (Average Directional Movement
Index), indicating the NSEASI’s reluctance to rise to glory. In the coming
week, we expect the index to continue to wander within the negative territory.
But why are we pessimistic? All indicators strongly suggest there are no
possible triggers to herald a rebound.
Our BUY Recommendation
About last week... CUTIX, one of our BUY stocks,
gained 4.0% W-o-W. Unfortunately, NIGERIAN BREWERIES — our top
BUY — shed weight W-o-W. The silver lining? NB is closer to its oversold region
and has more upside potential while topping, AGAIN , our BUY recommendations
for this week.
Based on last week’s observations, NIGERIAN BREWERIES (ADX: 32.55; MFI: 3.98; %B: 10.7), DANGCEM (ADX: 31.90; MFI: 25.92; %B: 37.3), OANDO (ADX: 26.34; MFI: 46.02; %B: 49.09), WEMABANK (ADX: 28.17; MFI: 55.79; % B: 40.65) and WAPCO (ADX: 48.93; MFI: 73.10; %B: 64.00) have strong prospects for fortune in the near term. These stocks currently hover around the oversold region with respective +DMIs bullying –DMIs with >25 ADX value, signifying a strong trend. Of these, our hot pick is NIGERIAN BREWERIES as it is set to create room for profit – a strong uptrend from the oversold region. Attention! Attention! Attention! The Nigerian market is currently not for the timorous.
Our SELL Recommendation
Previous week’s observations also suggest that FLOURMILL (ADX: 44.61; MFI: 97.01; %B: 83.14), GUINNESS (ADX: 45.43; MFI: 90.32; %B: 42.46), PRESCO (ADX: 77.32; MFI: 89.15; %B: -32.92) and MOBIL (ADX: 25.79; MFI: 88.07; % B: 42.46) top our wish list for investors yearning lean pockets. As it stands, these stocks are tremendously heading for the deep with –DMIs outstripping +DMIs and stronger ADX values too (well above 25). Strongest in downtrend and closest to the overbought region, FLOURMILL emerges top potential loser; we have no strings attached.
NB: Rate on ₦100M and above are negotiable and all rates are valid ONLY for fund received on/before 5th August 2019.