As expected using technical analysis techniques, profit
taking has thus seen a two days decline in the All Share Index from the week’s
open. (Link to analysis this Monday http://adeshinacfte.blogspot.com.ng/2017/04/weekly-technical-equity-outlook-10th.html)
Technically, we had pointed out that the index reached the
upper Bollinger band at 25,791.60 basis points (trend indicator) with a Doji
candle formed on Friday 7th April, 2017 at the same level (see daily chart below).
We also noted that there was inverse relationship between
index price action and volume as such the rally can be considered weak.
Conclusion:
Blue chip and volatile equities are likely to correct
downwards. Smart investors would be on the lookout for positioning at a
relatively low price.
Drop your email to get updates and trade ideas on Stocks
traded on the Nigerian Stock Exchange.
Posts
No comments:
Post a Comment