Banking Sector
The banking sector witnessed a marginal drop in value in the
past trading week as it depreciated by 0.20% to close at 273.70 basis points.
Year to date currently stands at negative 0.23%.
From a technical analysis perspective, the banking sector
within the mid-point and lower Bollinger band and finds support at the lower
Bollinger band at 267.5 basis point with RSI 14 day period picked up from 36
levels to currently trade at 46.9 levels
Key levels resistance 285 while intermediate support at
267.20 basis points.
Volume on the other hand continues to decline week compared
to previous week by 42%
Recommendations:
The bullish optimism in the banking sector could be regarded
as a suspect as the indices rise in value does not correspond with volume.
Speculative activities could be the order of the day in the coming trading week
as equity such as Guarantee Trust Bank
Plc, Access Bank, Zenith Bank, UBA and Fidelity Bank should be of keen
interest.
Oil and Gas Sector
The upside rally in the Oil and Gas sector, saw the sector
appreciated in the past trading week by 4.27% to close at 304.90 basis points.
The Year to date figure showed a decline percentage by 2.49%.
From a technical analysis perspective, the sector continues
to find resistance at 304.90 basis point also a confluence of the upper
Bollinger band. RSI 14 day period on the other currently shows a negative
divergence
Key levels resistance 304.90 while intermediate support at
280 basis points.
Volume indicators shows a decline
Recommendations:
Investor’s earlier accumulative stands may see a profit
taking period in the coming trading session.
Stocks such as Mobil, Oando and Eterna may could a corrective move while Total
could resume a potential upside rally
Industrial Sector
The industrial sector witnessed appreciated in value by 5.15%
in the past trading week to close at 1,678.80 basis points. Year to date currently
stands at positive 5.23%.
From a technical analysis perspective, Equities in the
industrial sector had a steep rally as depicted by the daily chart of the indices.
The index current find resistance at the upper Bollinger band at 1,689.90 with RSI
14 day period reaching the overbought level at 75
Volume on the other hand continues to decline week for three
consecutive trading days despite the upside rally in the sector
Recommendations:
The bullish trend in the sector may encounter a temporary
halt as profit taking by investors would likely see correction in the coming
week. Investors should consider re-positioning at 1,537 basis points.
Consumer Goods Sector
The Consumer Goods sector witnessed a marginal appreciation
by 0.80% in the past trading week to close at 632.83 basis points. Year to date
currently stands at negative 11.20%
From a technical analysis perspective, the sector is currently
trading a range of resistance 637.2 and support 619.6 basis points
Recommendations:
Investor’s toast in this sector remains neutral as equities
trades in a zigzag manner.
Insurance Sector
The Insurance sector witnessed an appreciation of 1.97% in
the past trading week to close at 126.26 basis points. Year to date currently
stands at negative 0.02%
From a technical analysis perspective, the rally in the
sector was largely due to rally in few equities in the sector. Continental
reinsurance and Mansard is the major driver in the sector.
Trend indicator showed room for upside rally with resistance
126.80 basis point a significant level for the sector.
Volume indicators stay relatively flat with RSI 14 day
period trending towards the overbought level.
Recommendations:
Profit taking could drive the sector down in the coming
week.
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