Vitafoam Nigeria Plc is one of the country’s leading manufacturers of flexible, reconstituted and rigid foam products. Incorporated in 1962 and listed on the Nigerian Exchange, the company has evolved from a mattress and foam producer into a broader comfort, bedding, furniture and polyurethane solutions group with operations and subsidiaries spanning Nigeria and parts of West Africa
Current price: N194
Rating: Buy
Price projection: N230, N250, 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
Vitaform trades within wave 4 of wave (3) in the intermediate cycle. This performance signals that the stock has potential for a final impulsive wave that completes a full market cycle.
Although volume remains low, the stock’s liquidity and momentum remain strong. Also, MACD sustained strong bearish momentum, which offers investment opportunities amid recovery.
Daily chart: Investment opportunity
On the daily chart, Vitaform is within its next corrective phase as investors buy into value. Investors should watch N174.60 and N160 as potential support levels with price projections of N230, N250, and N300.
The stock’s liquidity remained strong, signaling sustained investor interest amid this corrective phase. Also, volume sustained a low bullish momentum despite low market momentum and MACD’s bearishness.
SWOT Analysis
