CADBURY records upper breakout, set to record new high in 7yrs



Thursday, November 28, 2013 5:14 PM / Research

Today, Cadbury Nigeria Plc recorded an impressive patronage to close with another +5.0% gain, extending the recent uptrend as investors maintained moderate bargain posture towards the stock as against speculative tendency witnessed across the board.



The market outlook in the recent weeks revealed a sustained moderate bargain trend as the stock had recorded +38.13% gain in the last 9-weeks, following a prolonged price correction of 18-weeks experienced between May 25th and September 27th 2013 after hitting N64.53kobo, above it’s 6-years high of N64.00kobo recorded on October 20th 2006.



In addition, technical indicators revealed a growing bargain posture with a corresponding upsurge in the price momentum, indicating sustained positive sentiments as noted above.

Also, the stock maintained a strong bullish posture in both short and mid-long term periods as suggested by its price moving averages.

Furthermore, the price posture above upper Bollinger band further buttressed the growing bargain tendency noted above. We envisage the stock may hit above its upper resistance level at N66.01kobo which the stock failed to break on May 27th 2013.



In addition, price analysis reveals a mixed performance trend as the stock posted +23.24% and +8.21% as its 3-months and 6- months returns respectively while its 52-weeks and YTD performance stood at +130.22% and +166.72% gains respectively.

Conclusively, Cadbury Nigeria Plc closed at N62.85kobo, -4.79% below its 52-week high of 66.01, recorded on May 27, 2013.


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