NSEASI trades in range: In search of Direction

Chart Source: Marketwatch                                                                         NSEASI Daily chart

Market Sentiment:                                                    Actionable Points

Long term – Bearish                                                   Intermediate Resistance: 31,256.16 bps
Mid-term – Neutral                                                    Support: 28,053.16 bps
Short term – Neutral

Technical Profiling:

Investor’s indecisive bias in the Nigerian Stock Market has resulted to a zigzag movement in the broad index trading within a tight technical range ending the trading week marginally on the upside by 0.60%. The NSEASI price action shows a weak price momentum as the Bollinger band continues to contrast in a flat oscillator indicator (RSI 14 day period). The above daily reflects non-volatility and indecision from market participants.

Technical Implication:

Downward momentum loosing steam as the index continues to form a higher low week in week out finding support at 30,000 basis point. A trend above at 31,256.16 bps would favor the upside while on the down side, a breach below 28,053 basis point would mean the long term downtrend has thus resumed. 

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