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. 

For full analysis of stocks to watch with upside potentials on the Nigerian Stock Market and other global markets, send “add me” to trendonomicsng@gmail.com 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 website 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.

Strong USDOLLAR Bid Room for More

Source: Meta4trading platform                                                                        Daily chart

Fundamental forecast: Neutral

Market Sentiment:                                                                                      Actionable Points

Long term – Bullish                                                                                         Resistance: 97.78
Mid-term – Neutral                                                                                         Support: 96.60
Short term - Bullish

This past trading week saw the Greenback posted its best week in five months. The rally was derived less from the currency’s own fundamental improvement rather than slump amongst its major counterparts. The dovish shift and expectations from the ECB, PBoC, RBA, BOJ has thus favored the Dollar where market participants sort better alternatives. In the coming week, the FOMC decision would be market focus and other array of fundamental indicators expected from the US.  

Technical profile:

·         The daily chart above shows a upward break in an intermediate resistance 96.60 

·         Price action trading above confluence of flat moving averages

·         MACD histogram shows a strengthening upward trend

Trading Advice:

With short term bias up, Day traders and swing traders may take advantage of the current upward trend with short term timeframe perspective eyeing resistance level 97.78 on the other hand a close back below 96.60 would likely see shift in bias for the Greenback.

For full analysis of stocks to watch with upside potentials on the Nigerian Stock Market and other global markets, send “add me” to trendonomicsng@gmail.com 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 website 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.

Gold at Critical Technical level

The precious metal has since corrected to critical support level bulls (click here to view the previous report projecting this).

Technical analysis profile:

The breakout in the symmetric triangle and a final break above key technical resistance zone $1,161.98 – $1,170.49 makes our short term resistance projection for profit taking and expected short term corrective wave at zone $1,187.12 - $1,192.50. This zone is a Fibonacci confluence zone, $1,187.12  is a 116.2% Fibonacci extension (profit taking level) of the impulse wave $1,072.09 low and $1,171.08 high while $1,192.50 is 75% Fibonacci retracement point of the downtrend $1,072.09 low and $1,232.30 high.

In the near term, correction is expected to the downside towards support zone $1,161.98 – $1,170.49 to give the bulls opportunity to re-enter another impulse wave.

Sentiment:

As long as price action trend above the long and short term moving average bias remain in the upside, we consider renew bullish entry upon a bullish daily candle close above the support level. On the other hand a breach below this support at the end of the trading day, changes our sentiment to bearish.

For full analysis of stocks to watch with upside potentials on the Nigerian Stock Market and other global markets, send “add me” to trendonomicsng@gmail.com 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 website 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.