NGXASI: NGX All Shares Index
The All Share index traded above its weekly resistance level and remained bullish amid the prevailing profit-taking after crossing its 200,000 all-time high. Investors expect the index to consolidate before another markup phase.
The indicator reading on the weekly chart depicts a sustained bullish rally. RSI and MFI remain flat due to a pullback from other sectoral indexes. MACD remains strongly bullish. Since the index traded above its moving average, volume will act as a confirmation for another bull surge. At this point, the overall market remains positive. How did other sectors influence the NGXASI’s sentiment?
Market Performance Per Stock
NGXBNK: Bank Sector Index
The banking sector’s weekly performance reflects investors’ sentiment toward the index. After trading close to the support zone last week the index experienced a strong bull sentiment that broke its resistance level. The banking sector index started this week with a sturdy markup phase, which ended in profit-taking.
According to volume, 1.964 billion shares were traded this week following last week’s engulfing bullish signal. MACD remains bullish, confirming the week’s markup phase. MFI and RSI depict high liquidity and momentum in the index.
NGXCSMG: Consumer Goods Sector Index
The consumer goods index will start its markup phase in the weekly chart. After breaking its resistance level at 5616.62bps investors on the weekly chart will wait for a pullback to understand how to navigate the index’s next phase.
Despite the market opening for three days, 1.901 billion shares were traded in this sector. This index performance means that the sector had potential for a strong markup phase. MACD remains strongly bullish. RSI and MFI depict sustained momentum and liquidity in the index.
NGXIND: Industrial Sector Index
Three bullish candlesticks in an uptrend solidify the impressive performance of a market. It also signals a continuation trend in a markup phase. The industrial sector index can’t be ignored with this analogy. For the past three weeks, the index’s performance has invited more investors to benefit from this rally.
The bullish sentiment for this index remains strong, as indicated by volume. MACD stays bullish with RSI and MFI high at 89.42 and 93.5. At this stage, investors will expect a strong pullback soon for the market to reset and continue its bullish rally.
NGXOGSE: Oil and Gas Sector Index
The oil and gas sector ended the week with a strong bearish sentiment. This sentiment occurred due to the global tension in the Middle East, the United States, and Europe. On the other hand, the market consolidated briefly, showing signs of a potential pullback.
A pullback in the oil sector favours investors wanting to participate in the market. Thus, the oil index is expected to recover for another bull rally next week. Investors will speculate for resistance levels 4430.77 and 4457.40. Crossing these resistance levels means full market recovery.
The indicators for this index remain bullish despite the pullback. The volume indicator shows low bearish sentiment. Also, the index closed above the moving average, which solidifies the bullish sentiment for this sector on the weekly timeframe.
NGXINS: Insurance Sector Index
The weekly timeframe for the insurance sector offers a bigger picture for traders and investors. The index performance depicts a potential inverse head and shoulder candlestick formation. This means investors should expect a trend reversal upward at 1195.58 to complete this candlestick formation.
The daily chart and other lower timeframes have started showing signs of market recovery. The insurance sector has been consolidating for months below its 52-week high (1728.22bps). As the deadline for recapitalisation approaches, investors expect the index to join other sectors in this bull rally.
On the weekly chart, volume reflects that the bearish sentiment for this index is relatively low. However, MACD started its bearish signal after the index’s final performance. RSI remains within the safe zone for investment, while MFI indicates that liquidity still exists in this index.
Final Thought
While earnings results remain pending for several influential companies, the sectors maintains its top-notch performance. For the oil sector, it’s evident that investors are taking profit amidst global tension and influence in the sector. This is the best time for investors to buy into value.
