Sunday, October 30, 2016/Proshare Research

The Diagnosis
Analysis of the market activity in the week ended October 28, 2016 technically revealed growing negative sentiments, largely towards big capped stocks while investors displayed cautious postures.

However, an extensive analysis revealed improved accumulation level while we observed active opportunistic buying towards equities, particularly in Oil & Gas, Services and Agriculture sectors.

In addition, volume analysis revealed improved bargain tendency towards WAPCO, UNILEVER, CAVERTON and FBNH while investors displayed moderate sell postures towards FIDSON, HONYFLOUR, DIAMONDBNK and GUARANTY.

Nonetheless, investors displayed fresh and growing sell tendency in some active sector(s), particularly in Construction/Real Estate and Healthcare sector(s). However, we observed fresh and growing buy tendency in Agriculture, Oil & Gas and Services.

Summarily, the bears dominated the week, depressing the key benchmark index by 302.61 points against 264.21 loss recorded in the previous week to close at 27,294.21- ASI remains battered below its key resistance level at 41,957.50.

In addition, the All Share Index traded within the   range of 27,574.95 (week-high) and 27,098.52 (week-low) to settle at 27,294.21- below previous week’s low (27,478.04) by 183.33- This indicates growing sell sentiments when compared with previous posture. The outlook reveals active sell postures.

In the week just ended, market breadth closed negative at 0.69x against 0.58x recorded in the previous week on the back of negative sentiments.

Likely trends in the coming periods: We expect improved opportunistic bargain pattern as market sentiments appeared mixed while investors remained cautious during the week.



Technically, market sentiments during the bearish week favoured liquid and active stocks of Medium Cap categories in the sector(s) but with stronger positive sentiments in Agriculture, Services and Oil & Gas sector(s), which further revealed the sector(s) investors patronised in the week.

On the other hand, it was observed that negative sentiments appeared stronger in, Financial Services, Consumer Goods, Industrial Goods, Conglomerates, Healthcare and Construction/Real Estate



Stock Trend & Direction
We conducted a review of stocks that have sharpened market direction and performance in the week - using technical tools like RSI, MACD, VOLUME, MFI, CANDLESTICK, MOVING AVERAGES, BOLLIGER BANDS and ACCUMULATION & DISTRIBUTION to reveal investors’ sentiments towards the market movers.

THE BIG VOLUME
FBNH experienced moderate bargain tendency to close with positive sentiments in the week. The stock recorded +1.30% gain in the week against -1.00% loss recorded in the previous week.

The outlook in the week revealed a sustained sideways pattern in the last 8weeks to record -0.66%, following an active sell-down of 30.52% loss experienced between June 17^th and September 9^th 2016

In addition, technical indicator (MACD) revealed low-key bargain sentiments towards the stock while RSI and CCI revealed modest growth pattern in price momentum. The stock closed neutral in short-term but remained bearish in mid-long term periods, indicating improved presence of bulls towards the stock as revealed by its price moving averages.

Also, we observed a significant growth in bullish volume during the week, indicating active accumulation from investors during the week.

Technical conclusion on sentiments: The stock has low chance, with low reliability to sustained uptrend pattern in the coming session, considering the waning bearish tendency observed during the week. A Buy Signal! Chart below shows MACD, candlestick, RSI and volume analysis



THE GAINERS

CAVERTON experienced moderate bargain tendency to close with positive sentiments in the week. The stock recorded +27.90% gain in the week against +13.20% gain recorded in the previous week.

The outlook in the week revealed a sustained price recovery pattern in the last 3weeks to record 64.18% gain, following 6 weeks active sell-down of -54.11% loss, experienced between 12^th August and October 17^th 2016.

In addition, technical indicator (MACD) revealed active and growing bargain tendency towards the stock as RSI and CCI revealed sharp uptrend momentum. The stock closed neutral in short-term but remained bearish in mid-long term periods, indicating sustained presence of bulls towards the stock as revealed by its price moving averages.

Technical conclusion on sentiments: The stock has moderate chance, with moderate reliability to extend uptrend in the coming session, considering the active demand postures coupled with upper breakout observed in the week. A Buy Signal! Chart below shows MACD, candlestick, RSI and volume analysis



THE LOSERS

FIDSON experienced active sell tendency to close with negative sentiments in the week. The stock recorded -16.40% loss in the week against -3.80% loss recorded in the previous week.

The outlook in the week revealed a sustained and growing sell-down tendency towards the stock in the last 22 months to record 66.44% loss, following 29months active rally of +434.25% experienced between August 31^st 2012 and December 31^st 2014.

Technical indicator (MACD) revealed active sell-down trend with a sharp falling pattern in price momentum while the stock closed bearish in both short-term and mid-long term periods. This indicates growing presence of the bears towards the stock.

Technical conclusion on sentiments: The stock has moderate chance, with moderate reliability, to sustain the sell sentiments in coming sessions, considering the active sell momentum  and a lower breakout experienced during the week. A Cautious Signal! Chart below shows MACD, candlestick, RSI and volume Analysis



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FBNH

CAVERTON

FIDSON

Disclaimer: The information provided herein is our opinion only. Under no circumstances do any statements here represent a recommendation to buy or sell your stocks or make any kind of an investment. You are responsible for your own due diligence. To summarize, we do not provide recommendations nor do we make any claims or promises that any information here will lead to a profit, loss or any other result. They are for your guidance purpose only.