GUARANTY: will it defy market sentiments at N17.39kobo? - key entry point

Proshare



Thursday, February 12, 2014 5:14 PM / Research

 

Today, GUARANTY experienced sustained sell pressure on the back of growing speculative tendency towards the stock as indicated by falling momentum. The stock declined by -5.6% to extend the short term profit-taking, following the recent rally of 28.88%.

There is a strong tendency that the stock may break its key support level at N17.39kobo, considering the general fresh and growing pessimistic tendency on the Nigerian bourse.



In addition, the stock recorded a lower breakout, breaking lower Bollinger band by 8.4% as sell pressure gained tempo along with sharp decline in price momentum- This further revealed sustained low bargain appetite from both investors and shareholders.

 

The market outlook in the recent week revealed a speculative trading pattern while the stock had shed by -15.0% so far in the week.



Furthermore, the stock closed bearish in both short and mid-long term periods as the relationship between the stock and its moving averages had suggested. This further buttresses the growing speculative towards the stock, just as noted above.



In addition, the price analysis revealed unimpressive performance posture as the stock posted -27.40%  and -40.47% as its 3months and 6months returns respectively while its 52weeks and YTD performance stood at -35.05% and -29.07% loss respectively.




Conclusively, sub-sector/peer analysis further revealed the stock to be among the worst performing stocks in the last one year, which further suggests that the sentiments within the sub-sector remained negative towards GUARANTY

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