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Market | Market Sentiments

Sentiment Analysis Report – W/E October 07, 2016

Oct 08, 2016   •   by   •   Source: Proshare   •   eye-icon 5014 views

Sunday, October 09, 2016/Proshare Research

The Diagnosis
Analysis of the market activity in the week ended October 07, 2016 technically revealed active pessimistic trading pattern as market sentiments turned negative while investors dislayed low risk appetite in key active sectors.

However, an extensive analysis revealed low-key accumulation pattern while investors appeared cautious towards equities, particularly in Conglomerates, Consumer Goods, Industrial Goods and Healthcare sectors.

In addition, volume analysis revealed active sell tendency towards ZENITHBANK, GUARANTY, WAPCO and CUTIX while investors displayed modest buy postures towards UBN, CONOIL, DIAMONDBNK, and UCAP.

Nonetheless, investors displayed fresh and growing sell tendency in some active sector(s), particularly in Conglomerates, Industrial Goods and Consumer Goods sector(s). However, we observed fresh buy tendency in Oil & Gas, Agriculture and Financial Services.

Summarily, the bears dominated the week, depressing  the key benchmark index by 500.18 points against 88.29 gain recorded in the previous week to close at 27,835.22- ASI remains battered below its key resistance level at 41,957.50.


In addition, the All Share Index traded within the   range of 28,283.99 28,335.40 (week-high) and 27,835.22 28,236.23 (week-low) to settle at 27,835.22 - below previous week’s low (28,236.23) by 401.01- This indicates bearish sentiments when compared with previous posture. The outlook reveals active sell postures.

In the week just ended, market breadth closed negative at 0.70x against 0.82x recorded in the previous week on the back of low risk appetite.

Likely trends in the coming periods: We expect a sustained low bargain pattern as market sentiments had turned bearish while investors appeared 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 Financial Services, Agriculture 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, Services, Consumer Goods, Healthcare, Conglomerates and Industrial Goods



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

ACCESS experienced moderate sell tendency to close with negative sentiments in the week. The stock recorded -2.70% loss in the week against -0.50% loss recorded in the previous week.

The outlook in the week revealed a sustained weak bargain tendency as the stock maintained sideways trading pattern on mixed sentiments to record -3.57% loss in the last 7weeks, indicating a failed price recovery pattern, following 16.77% sell-down experienced between June 22nd and July 22nd 2016.

In addition, technical indicator (MACD) revealed sustained weak bargain sentiments towards the stock while RSI and CCI revealed falling price momentum. The stock closed bearish in both short-term and mid-long term periods, indicating sustained presence of bears towards the stock as revealed by its price moving averages.

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

Technical conclusion on sentiments: The stock has low chance, with low reliability to sustained sell-down pattern in the coming session, considering growing sell tendency near key support level at N5.38.  A Cautious Signal! Chart below shows MACD, candlestick, RSI and volume analysis



THE GAINERS
7UP experienced moderate bargain tendency to close with positive sentiments in the week. The stock recorded +13.70% gain in the week against -7.30% loss recorded in the previous week.

The outlook in the week revealed a sustained price recovery pattern in the last 8weeks to record 54.00% gain, following 43 weeks active sell-down of -47.65% loss, experienced between October 30th 2015 and August 19th 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 short-term but remain neutral in 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 moderate chance, with low reliability to extend uptrend in the coming session, considering the active demand postures and upper breakout observed in the week. However, the overbought posture of the price may incite sell tendency. A Buy Signal! Chart below shows MACD, candlestick, RSI and volume analysis



THE LOSERS
WAPCO experienced moderate sell tendency to close with negative sentiments in the week. The stock recorded -13.90% loss in the week against 2.10% loss recorded in the previous week.

The outlook in the week revealed active and fresh sell-down tendency towards the stock in the week, following active and prolonged sell down activities of -55.05 loss experienced between January 8th and October 7th 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 moderate chance, with moderate reliability, to sustain the sell sentiments in coming sessions, considering the active sell momentum experienced during the week with a lower-breakout. A Cautious Signal! Chart below shows MACD, candlestick, RSI and volume Analysis



Click to view Due Diligence and Price Performance trend.

Click to view more on;

ACCESS

7UP

WAPCO

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. 

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