Thursday, June 18, 2014 7:10 PM / Research
Today, CADBURY succumbed to fresh sell pressure to break its key support after prolonged stagnant posture at N40 while the stock recorded a lower breakout to slip further into oversold threshold.
The stock recorded another moderate loss of -5.00% as sell tendency gained tempo. It was also observed that the stock had maintained a prolonged sideways trading pattern after 53.62% loss experienced between February 22nd and December 31st 2014. This indicates strong cautious postures from both investors and shareholders, driven by mixed sentiments since early January 2015.
Just as observed above, the stock records a lower breakout by 28.0% with corresponding surge in bearish volume by 341.56%. Furthermore, the stock closed bearish in both short and mid-long term periods with corresponding sharp decline in price momentum- This indicates strong pessimistic postures from both the investors and the shareholders.
Technically, the stock remains in a strong bearish mode in an oversold region, to close bearish in both short and mid-long term periods as the relationship between the price and its moving averages had suggested.
Also, the price analysis revealed unimpressive performance as the stock posted -8.16% and -2.79% loss as its 3months and 6months returns respectively while its 52weeks and YTD performance stood at -53.71% and -5.23% loss respectively.
Conclusively, sub-sector/peer analysis further revealed the stock to be among worst performing stocks in the last one year, which further suggests that the sentiments within the sub-sector remain negative towards CADBURY