Company Overview
CWG Plc is one of Nigeria’s largest indigenous ICT and digital transformation companies, providing technology infrastructure, cloud services, software solutions, managed services, cybersecurity, enterprise applications, and digital platforms across Africa. It has evolved from a traditional hardware reseller into a technology solutions and platform company, positioning itself as a digital transformation partner for enterprises across Africa.
Current price: N21.50
Rating: Buy
Projection with potential percentage gain: N27 (+28.75%) or N30 (42.86%)
Technical Analysis
In this report, we shall use the following tools and analysis methods:
Elliott’s wave theory to understand the overall market sentiment
Fibonacci tools to determine support and resistance levels
The Relative Strength Index and volume to evaluate the market’s strength
The Money Flow Index to determine the market liquidity
Moving average and MACD to understand the nature of the trend
Top-down analysis to know the best investment position
Elliott Wave Analysis
Weekly chart analysis: Market overview
On the weekly chart, the market remains in its corrective zone. However, the candlestick wicks offer a distinct narrative, revealing an investment opportunity. In the lower degree cycle of the Elliott wave, the market is in its fourth corrective wave, which is a flat ABC correction.
Daily chart analysis: Investment opportunity
The market is in its ABC corrective phase on the daily chart. Plotting the Fibonacci retracement in wave 3, the stock offers a strong support at 0.786 of the Fibonacci sequence. Thus, the buying opportunity lies between N20 and N21, with a projection of N27 (+28.75%) and N30 (42.86%)
Indicator Analysis
Weekly chart analysis: Market overview
Due to less profit-taking, bearish volume has reduced. Also, RSI’s momentum remained neutral at 49.82. Additionally, MACD’s bearish momentum remains solid. However, money sustained its upward trajectory, indicating that market participants are buying into value.
Daily chart analysis: Investment opportunity
Despite the strong bearish sentiment, MACD’s bearish momentum sustained its divergence signal. This performance indicates a potential bull run is on the horizon. The strong bearish volume offers investors an opportunity to buy into volume. Also, RSI remains neutral, which reflects a safe long-term investment zone.
Fundamental Analysis
Financial Report for the Year 2025
Key Insight: The financial rating for CWG is 79%, which is sustainable for long-term trading and medium-term investment
SWOT Analysis
