Sunday, September 25, 2016/Proshare Research

The Diagnosis  
Analysis of the market activity in the week ended September 23, 2016 technically revealed improved optimistic trading pattern while investors remained bullish towards equities in key active sectors.

However, an extensive analysis revealed significant growth in accumulation pattern while investors still maintained ‘buy and hold’ positions in key active sectors, particularly towards stocks in Oil & Gas, Consumer Goods and Agriculture sectors.

In addition, volume analysis revealed active bargain tendency towards OANDO, STANBIC, CONOIL, OKOMUOIL and PZ while investors reduced exposture to GUARANTY, GUINNESS, SKYEBANK and DANGFLOUR

In a similar vein, investors displayed fresh and growing bargain tendency in some active sector(s), particularly in Agriculture, Oil & Gas and Consumer Goods sector(s). However, we observed a fresh and waning sell tendency in Conglomerates, ICT, Construction/Real Estate and Healthcare

Summarily, the bulls dominated the week, strengthening  the key benchmark index by 388.63 points against 280.96 gain recorded in the previous week to close at 28,247.11- ASI remains battered below its key resistance level at 41,957.50

In addition, the All Share Index traded within the   range of 28,247.11 (week-high) and 27,839.93 (week-low) to settle at 28,247.11- above previous week’s high (27,858.48) by 388.63- This indicates growing bargain sentiments when compared with previous posture. The outlook reveals active bargain postures.

In the week just ended, market breadth closed positive at 1.38x against 1.55x recorded in the previous week on the back of improved risk appetite.

Likely trends in the coming periods: We expect a sustained bargain pattern as investors had displayed improved risk appetite during the week while RSI is still within bargain range.



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 Oil & Gas, Agriculture, Consumer Goods, Financial Services and Industrial Goods 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, Healthcare, Construction/Real Estate, Services, Conglomerates and ICT



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
DIAMONDBNK experienced moderate bargain tendency to close with positive sentiments in the week. The stock recorded +3.50% gain in the week against -4.20% loss recorded in the previous week.

The outlook in the week revealed an improved tendency, indicating a sustained price recovery pattern in the last 4weeks to record +13.33% gain, after 10weeks sell-down of 56.07% experienced between June 17^th and August 26^th 2016.

In addition, technical indicator (MACD) revealed sustained moderate bargain sentiments towards the stock while RSI and CCI revealed improved uptrend 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.

However, 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 price recovery in the coming session, considering the improved accumulation observed in the week.  A Buy Signal! Chart below shows MACD, candlestick, RSI and volume analysis



THE GAINERS
CONOIL experienced active bargain tendency to close with positive sentiments in the week. The stock recorded +33.50% gain in the week against +33.80% gain recorded in the previous week.

The outlook in the week revealed strong price recovery pattern in the last three weeks to record +106.61% gain, following prolonged 9 weeks active sell-down of -19.17% loss, experienced between July 1^st and September 2^nd 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 bullish in both short-term and mid-long term periods, indicating active presence of bulls towards the stock as revealed by its price moving averages.

Technical conclusion on sentiments: The stock has low chance, with low reliability to extend uptrend in the coming session, considering the active demand postures observed in the week. However, there is strong possibility of price correction as RSI revealed an extreme overbought posture of the price A Cautious Signal! Chart below shows MACD, candlestick, RSI and volume analysis



THE LOSERS
CAVERTON experienced active sell tendency to close with negative sentiments in the week. The stock recorded -13.20% loss in the week against flat position recorded in the previous week.

The outlook in the week revealed a continued sell-down tendency towards the stock in the last 4weeks to record -28.08% loss, following prolonged sideways trading pattern to record 4.29% gain experienced between May 27^th and August 12^th 2016.

Technical indicator (MACD) revealed active sell-down 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 low chance, with low reliability, to sustain the sell sentiments in coming sessions, considering the active sell momentum experienced during the week. However, the oversold posture may incite moderate speculative buying anytime soon A Cautious Signal! Chart below shows MACD, candlestick, RSI and volume Analysis



Click to view Due Diligence and Price Performance trend.

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DIAMONDBNK

CONOIL

CAVERTON

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.