NSEASI: A TALE OF CONTINUED DOWNTREND

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 – Bearish

Technical Profiling:

The NSEASI continues to trend lower at a weak price momentum. This is defined by declining price trend and declining volume.

Price trend still in the downward arena as the index continues to trend in between the EMA 20 and lower Bollinger band

RSI 14day period trades flat  

Technical Implication:

Downward momentum loosing steam as the uptrend is building momentum. A trend toward key support level 28,053 would solidify the bearish trend. On the other hand, 31,256 basis points remain is a level to breach on the upside to confirm any bullish trend.

*Mid-accumulation phase: Bearish forces still in place but investors methodically accumulate shares, but still no signs of upward momentum develop. Fundamentals remain negative 

For more analysis, realtime trade calls and Technical analysis education of stocks both for Nigerian Equities Trading and other global markets, mail trendonomicsng@gmail.com or contact 09092133294 to join our mailing list.

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DISCLAIMER

Trendonomics or anyone involved with Trendonomics Resources Company will not accept any liability for any trading loss or damage as a result of reliance on the information contained within this email including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Commodity - Gold: Double bottom at key support level

The precious metal had for four consecutive weeks slide in value from a high of $1191.39 reached on 15/10/2015 to a low of $1073.94 per ounce seen on 12/11/2015. The downtrend had largely been as a result of the Federal Reserve signal that it may be ready to hike the benchmark interest rate, also a strong rally in the dollar (Gold and the Dollar trends in inverse relationship) has seen investors seek safe haven in the Dollar having downward pressure on Gold.

From a technical standpoint, the downtrend may have reached an exhaustion level since the commodity closed above key support at 1081 August low forming a double bottom. MACD on the daily timeframe signaling a possible weak momentum in the downtrend and a positive divergence.

A rebound may be seen in the coming trading sessions possibly towards 1131 a 50% Fibonacci retracement level of the current downtrend while on the other hand, price action daily close below 1081 would reiterate the strong downward trend in the metal.

Analyst Expectation:

Rebounds expected towards 1131 though the broader bearish outlook remain unchanged.

For more analysis, realtime trade calls and Technical analysis education of stocks both for Nigerian Equities Trading and other global markets, mail trendonomicsng@gmail.com or contact 09092133294 to join our mailing list.

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DISCLAIMER

Trendonomics or anyone involved with Trendonomics Resources Company will not accept any liability for any trading loss or damage as a result of reliance on the information contained within this email including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Equities Pick for the Week

On my top list is UBCAP Plc.

Chart Source: Amibroker                                                            UBCAP Plc Daily chart

Sentiment: Buy at market price                                      Duration: Short term/10% - 15% Profit potentials

Technical analysis profiling:

Price finds support at N1.32K at the lower Bollinger band while RSI 14 day period showed a bullish reversal.

Candle pattern: Bullish Engulf pattern which is a reversal pattern

Conclusion:

Swing or Day trader to take advantage of early and short term speculative potentials projecting N1.50K

The next top pick for the week is Skye Bank Plc

Chart Source: Amibroker                                                                     Skye Bank Plc Daily chart

Sentiment: Buy at N2 – N2.05k                                  Duration: Short term/10% - 15% Profit potentials

Technical analysis profiling:

A bullish reversal candle pattern as seen in the railyway track candle pattern in the last trading day in October

Support found at the lower Bollinger band

RSI 14 day period reversed from the bearish zone

Conclusion:

Swing or Day trader to take advantage of early and short term speculative potentials projecting N2.80k resistance level, a close above N2.40k would solidify our bias. Risk level at N1.60K

The next recommendation is Okomu Oil Plc

Chart Source: Amibroker                                                                      Okomu OIl Plc Daily chart

Sentiment: Buy at N29.15K                                                                          Duration: Medium term

Technical analysis profiling:

The stock has since corrected over 50% of the uptrend rally after hitting an over boght zone in the momentum indicator.

On 30^th October, 2015 price action from investors sentiment ended with a bullish piercing pattern at the 50% Fibonacci retracement level.

RSI 14 day period slightly below 50 mark

Conclusion:

Swing or Day trader to take advantage of the renewed uptrend sentiment towards resistance N36 and a breach in this level would extend our target to around N45

For more analysis, realtime trade calls and Technical analysis education of stocks both for Nigerian Equities Trading and other global markets, mail trendonomicsng@gmail.com or contact 09092133294 to join our mailing list.

-------------------------------------------------------------------------------------------------------------------------------------------------

DISCLAIMER

Trendonomics or anyone involved with Trendonomics Resources Company will not accept any liability for any trading loss or damage as a result of reliance on the information contained within this email including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.