NAHCO plc records new support level as sell pressure wanes

Proshare

Thursday, February 14, 2012 / |TheAnalyst

Lately, the share price of Nacho Plc is experiencing a continued waning trend on the back of weakness in bargain posture as the stock peaked at N8.81kobo on January 28th 2013




Analysis reveals short term retracement in the last 3weeks while the stock has witnessed -6.36% loss on moderate sell tendency. The price correction follows the +65.85% price appreciation witnessed on the back of 5weeks rally between Dec 21st 2012 and Jan 25th 2013 while the stock broke its 33months resistance at N8.77kobo, recorded on 27th May 2011.

The stocks technical analysis indicated the stock to be bullish in mid-long term but closed neutral in short term, this points to weakness in bargain posture as presence of the bears towards the stock gained tempo.



Notwithstanding, the strong willingness on the part of investors to pay higher remained very strong as the stock closed bullish in mid-long term, stabilising into trading range as revealed by RSI.


In addition, we envisage the stock might regain its uptrend soon, considering the contraction of the Bollinger bands, which indicates explosion anytime soon while the sell pressure wanes as revealed by MACD.


Looking at this price trend, the stock has performed impressively in the last one year with +35.25% price appreciation with YTD performance of +53.06% gain, outperforming the key benchmark indices which stands at +18.74% YTD.



Conclusively, market sentiments towards the stock remained positive in the last few sessions as the stock stabilises into trading range, though still appeared trading at its top, indicating the stock may be set to record new support level at N7.60kobo.

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