Caverton Offshore Support Group was incorporated in Nigeria on 2 June 2008. It was established to bring together Caverton Helicopters, which began operations in 2002, and Caverton Marine, which commenced operations in 1999. The Group was designed around the provision of marine and aviation logistics to Nigeria’s offshore oil and gas industry. The company is now attempting to evolve beyond its historical dependence on offshore helicopter logistics.
Current price: N4
Rating: Buy
Price projection: N7 and N10
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
Caverton experienced a strong ABC flat correction (3-3-5) and retraced to the 0.618 Fibonacci level. At this level, the stock began its recovery phase, attracting trading opportunities.
Although the bullish volume on the weekly chart remains low, the stock’s liquidity and momentum gradually improved. This performance aligns with Caverton’s current market phase, sustaining MACD bearish divergence signal.
Daily chart: Trading opportunity
Plotting the Fibonacci tool on the daily chart, Wave 5 of the corrective Wave C retraced to the 0.681 Fibonacci level. This performance make N3.5 and N4 a potentially strong support level for traders.
In line with this performance, Caverton’s liquidity and momentum improved, aligning with the recovery phase. Notably, MACD’s bullish momentum improved, signallng a continuous bullish run. Given this sentiment the price projections for Caverton include N7 and N10
