NASCON Allied Industries Plc, established in 1973 as the National Salt Company and became publicly listed in 1992. A Nigerian food-manufacturing company, it is a member of the Dangote Group Dangote Industries Limited owns 62.19% of NASCON, with the remaining 37.81% held by the public.
Current price: N195
Rating: Buy
Price projection: N280 and N360
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, NASCON is trading within wave 4 of Wave I of the grand cycle. This means that the stock has potential for an upward movement. Also, the indicator readings suggest that the market’s money flow and momentum remain solid despite profit-taking. Additionally, MACD’s bearish momentum continues to strengthen, offering investors the opportunity to buy into value.
Daily chart: Investment opportunity
On the daily chart, NASCON prepares for another bearish rally. This sentiment offers trading and investment opportunities. Thus, investors should watch N175 and N165 as potential support levels, with the price projecting at N280 and N360. Although volume is low, the stock’s liquidity remains strong. This performance reflects sustained investor interest amid the corrective phase.
SWOT analysis
