NGX All Shares
The NGX index traded and closed above the moving average at 196066.09. Instead of breaking out, the market is holding at the 197271.19 resistance level, forming a near double-top chart pattern.
Interestingly, Money Flow Index (MFI) moved from 44.92 to 55.13. This indicates that momentum is returning to the market. Regardless, investors and traders should treat this level as the profit-taking zone. How did other sectors perform?
NGX Performance Per Stock
NGXBNK: Banking Sector
NGXBNK continues its bull run, as profit-taking still prevails in the distribution stage. However, it hasn’t broken the support level at 1868.17. Today, the index closed at 1868.87, near the support level. Is this price action leading to a markdown?
The point of decision-making
Despite sellers taking over the market, MFI moved from 31.7 to 60.7 in the daily timeframe. This action indicates that liquidity and momentum are returning to the market, thus making 1868.17 a strong support level.
Looking at the 5-minute timeframe as highlighted below, we can see that the price started above the moving average, indicating a potential bull market. However, profit takers didn’t allow the price to break out 1880.07, the current resistance level.
Since the price closed on the support level with RSI, MFI, and volume looking positive, we expect buyers to continue pushing the market upward to the resistance level at 1880.07. Finally, breaking the resistance level at 1880.07 will confirm a strong bull run.
NGXCSMG: Consumer Goods Sector
As we observed in the banking sector, the consumer goods index continues to experience profit–taking activities. The price traded and closed below the moving average at 5496.49. With this action, traders and investors will observe the market as the price heads to the support level at 5463.29.
Point of decision making
Top-down analysis shows that the buying power was weak in this sector today. Yet, the market ended on a positive note in the 5-min timeframe. Let’s not forget that the price is near the resistance level in the daily timeframe. Thus, this is a moment of watching, profit-taking, and waiting.
NGXIND: Industrial Sector
In the industrial sector, the price traded and closed above the moving average at 7545.37. Though the price is above the moving average, we should consider that it closed in the resistance zone, resulting in a bear candle. This price action means profit-taking has started in the industrial sector.
Point of decision making
Despite profit-taking, MFI remains at 79.75, tilting upwards. This indicates that the market still has momentum. However, investors and traders must understand that the price is at a resistance level, with potential to trade below the moving average
NGXOGSE: Oil and Gas Sector
The NGXOGSE pulled back while trading over the moving average at 4522.52. While the oil and gas sector prepares for another markup, the index invites traders and investors to key into the trend.
Point of decision making
Since the sector index trades above the moving average, the market is strong. Investors and traders should also understand the market is in the profit-taking zone, at show in the 5-min chart above. With that said, price is expected to trade within the profit-taking zone using 4547.53 as the resistance level and 4519.86 as the support level.
NGXINS: Insurance Sector
The insurance index currently trades in the support zone at 1294.29. As shown in the image above, the candlestick almost formed a doji pattern, which indicates a market trend reversal. However, the price closed bullish with sellers dominating the market.
Point of decision making
Price heads to the final support level at 1272.42, where buyers would be ready to change the tide of this index. However, this depends on the current market momentum. MFI tilts upward at 60.34, while RSI is flat at 43.08. On the other hand, MACD offers a red signal to indicate the bearish nature of the market
Final thought
The three sectors that deserve to be in an investor’s watchlist include banking, consumer goods, and the oil and gas sector. Although the banking and consumer goods sectors trade below their moving averages, they are close to support levels. The oil and gas sector offers investors another price for entry
