Conclusion:
Based on technical analysis, index is
to likely begin a corrective movement to the downside driven by the expectation
that investors would embark on more profit taking activities (which technically
started on Friday 12th January, 2018) to test immediate support of
39,588.9
Our expectation is informed by the
inability for the index to rally or close above the key resistance level of
43,255 while also all momentum indicators on the monthly, weekly and daily
timeframe are either at the overbought territory or showing signs of impending
negative divergence.
Summary:
Most stocks that have availed
investors with capital gains over the past weeks are more likely to retrace or
correct as such drive the index down to retest support level 39,588 on the
other hand a monthly close above key resistance 43,255 would signal more steep
rally in most valuable stocks listed on the exchange.
For summary of my technical analysis
view on individual equities, contact me on a.adetunji@trendonomicsng.com
Happy Trading Week
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