Monday, September 22, 2014 5:14 PM / Research
Today, PREMBREW recorded a -4.90% loss to halt the 6weeks uninterrupted gaining streak to hit 5yrs high. Analysis revealed a significant decline in bargain appetite as both investors and shareholders displayed active profit-taking tendency towards the stock with a corresponding surge in bearish volume by 48.90%.
The price pattern further revealed an increased chance for short term price correction to persist while the volume analysis suggests growing pessimistic trading as both money inflow and accumulation pattern recorded a sharp decline.
The stock had recently experienced a 6-week moderate rally of +564.94% to hit its all-time high at N5.12kobo on September 19th 2014, following an overwhelming and prolonged pessimistic and lackluster trading pattern experienced from 2011.
The stock had recently defied the general bearish sentiments in the market to move from N0.72 to N5.12kobo between August 1st 2014 and September 19th- an indication of strong renewed bargain interest and loyalty from investors and shareholders, driven by (un)known improved fundamentals.
Further analysis revealed that the general pessimistic postures towards investment in equities could not be isolated from cautious trading displayed towards the stock.
In a similar vein, technical indicator further revealed an active decline in bargain posture with corresponding steep fall in price momentum while the stock closed bullish in both short term and mid-long term period, suggesting the bears are yet to gain full control.
Nevertheless price analysis revealed impressive performance outlook as the stock posted +532.47% as its 3months and 6months returns respectively while its 52weeks and YTD performance stood at +558.11% and +532.47% gain respectively.