Monday, July 29, 2019 / 10:20AM / By
Market Last Week (Our Observation)
Market This Week (Our Expectations)
Weekly Stock Watch for Technical Traders
Market Analysis… NSE ASI Breaks 3-week Support Level
The NSE All Share Index, declined marginally to print at
27,918.59 points. As has been the case recently, the Negative Directional
Movement Index (-DMI) is not only outstripping the Positive Directional
Movement Index (+DMI), it also continues to display a super strong ADX (Average
Directional Movement Index), indicating the NSEASI’s reluctance to rise to
glory. In the coming week, we anticipate the index will continue to wander
within the negative territory. But why are we pessimistic? All indicators
strongly suggest there are no possible triggers to herald a rebound.
Our BUY Recommendation
Last week, our top pick was WAPCO, and guess what? The stock gained 11.2% W-o-W. We’re that good! Based on last week’s observations, NIGERIAN BREWERIES (ADX: 32.55; MFI: 5.59; %B: -0.72), DANGCEM (ADX: 31.90; MFI: 25.92; %B: 0.30), CUTIX (ADX: 26.76; MFI: 44.77; %B: 0.27), OANDO (ADX: 26.34; MFI: 57.64; %B: 0.36) and WEMABANK (ADX: 28.17; MFI: 77.25; %B: 0.74) have strong prospects for fortune in the near term. These stocks currently hover around the oversold region with respective +DMIs bullying –DMIs with >25 ADX value, signifying a strong trend. Of these, our hot pick is NIGERIAN BREWERIES as it is set to create room for profit – a strong uptrend from the oversold region. Attention! Attention! Attention! The Nigerian market is currently not for the timorous.
Our SELL Recommendation
Previous week’s observations also suggest that NESTLE (ADX: 37.57; MFI: 92.12; %B: 0.76), TRANSCORP (ADX: 44.98; MFI: 90.03; %B: 0.55), CAP (ADX: 52.13; MFI: 88.29; %B: 0.36) and CADBURY (ADX: 42.91; MFI: 84.90; %B: 0.56) top our wish list for investors yearning lean pockets. As it stands, these stocks are tremendously heading for the deep with –DMIs outstripping +DMIs and stronger ADX values too (well above 25). Strongest in downtrend and closest to the overbought region, NESTLE emerges top potential loser; we have no strings attached.
NB: Rate on ₦100M and above are negotiable and all rates are valid ONLY for fund received on/before 29th July 2019.