NSE All Share Index Approach an end to the Short term Pullback

The short term pullback in the Nigerian Stock Exchange (NSE) All Share Index may be nearing its end. From a technical perspective the key support zones are 31,033.3 - 31,785.8 basis point. With the index currently stands at 32,459.17 basis point.

 
Source: Amibroker NSE ASI Weekly Chart

Trend Analysis: 
 

From a technical analysis perspective, the NSE All Share Index after rallying to breach resistance level 31,073.30 basis points in June 2017 reached an high of 34,384.7, thereafter corrective move began and we currently see a retracement to possibly test the resistance now support of 31,073.30 bps. Key support and resistance levels are 31,073.3 and 34,384.7 bps respectively.

Trend indicators shows that the index currently trades above the SMA 200 and SMA 100 (medium and long term moving averages) but slightly below the SMA 5 (the short term moving average). Bollinger band system is showing a tight range (consolidating in preparation for an impending rally) 

Momentum indicators shows both RSI 14 day period and stochastic slow and fast retraced from the overbought zones to give the opportunity for another round of bullish rally in the short and medium term. Volume analysis on the other hand shows weakness in the bearish movement

 

Source: Amibroker NSE ASI Daily Chart

Our Expectations:

We expect the gradual end of the short term pullback experienced in equities traded on the exchange. Renewed bargaining interest is expected in the coming week especially in the banking and industrial sectors.  

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