UAC of Nigeria Plc (NGX: UACN) is one of Nigeria’s oldest and most diversified investment holding companies, with exposure to consumer goods, animal feeds, paints and coatings, quick-service restaurants and other investments/associates. Its transformation in recent years has increasingly focused on concentrating capital behind businesses with stronger growth and return potential.
Current price: N175
Rating: Buy
Price projection: N256 and N300
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, UAC of Nigeria trades within wave 4 of the wave (3) intermediate cycle. This sentiment suggests that the company has strong bullish potential. Currently, investors are taking profits as money flow and momentum decline. Also, MACD’s bearish momentum remains strong, aligning with the overall market sentiment. Amid this corrective phase, the stock sustained strong liquidity and momentum.
Daily chart: Investment opportunity
On the daily chart, volume, liquidity, and momentum remain low due to the deep corrective market. This performance offers huge investment opportunities as RSI remains within the oversold region. Given this sentiment, investors should watch N160 and N150 as potential strong support levels, with prices projected at N256 and N300
SWOT analysis
