FTN Cocoa Processors Plc is one of Nigeria’s few publicly listed cocoa processing companies. The company is engaged in the processing and export of cocoa-derived products, thereby serving both domestic and international markets.
Current price: N8.50
Rating: Buy
Price projection: N12.83 and N16.15
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: Market overview
On the weekly chart, FTNCOCO should finish wave B and transition to wave C where investment opportunity lies. In line with this sentiment, MACD commenced its bearish signal amid recovery phase. However, due to the strong recovery phase, the market liquidity and momentum remained strong, closing at 69 and 58.53, respectively.
Daily chart: Investment opportunity
On the daily chart, the stock experienced a strong (WXYXZ) corrective phase. Currently, FNTCOCO is within wave Z of this deep correction. Thus, investors should watch for strong support levels at N7 and N8 with price projections of N12.83 and N16.15.
In line with this sentiment, MACD commenced its bearish signal, investing discount investors. Also, the stock’s liquidity and momentum remains solid, closing at 52, respectively. This performance offers favourable investment conditions.
SWOT analysis
