Trade Idea: Nigerian Stocks

Mobil Plc

Trend Analysis:

The price of the stock having rallied to a high of N385.20K from N117.57K saw a sharp correction to find support at 50% Fibonacci retracement level. RSI 14 week period currently trades at 45 having left the oversold level of 30.

Volume analysis is seeing a gradual pickup in momentum.

 

Chart 1 – Weekly Timeframe

What to expect:

We expect a renewed rally in the stock (subscribe to our trade idea newsletter for exact entry and exit signal)

ETI

Trend history:

The upside rally from N7.02K got to a high of N15.79K before correcting to test resistance turned support at N12.09K a confluence of 61.8% Fibonacci retracement level.

The weekly candle closed with a bullish engulf pattern at technical level of N12.09K (A confirmation candle). Relative strength index is currently trading at 63 (buying zone) after retracing from overbought territory.

 

Chart 1 – Weekly Timeframe

Expectation:

The upside rally has resumed a bullish momentum

Recommendation:

Buy at current market price with risk limited to N12.40 and profit target at N18.15K

FBNH

Trend history:

The stock’s market price presently seeing corrective trend from the high it got to at N7.79K is most likely to continue and find support at N5.36K before a renewed buying interest would be seen

 

Chart 1 – Weekly Timeframe

Expectation:

Correction to continue 

Recommendation:

Buy limit at N5.36 – N5.50K range with risk limited at N5.25K and profit target at N9.08K