Chams Holding Company Plc is one of Nigeria’s longstanding indigenous technology companies.
Established in 1985, Chams initially operated in computer maintenance and technology services before expanding into identity management, smartcard technology, payment systems and digital transaction infrastructure.
Its history is closely associated with the development of Nigeria’s digital identity and electronic payment ecosystem.
Current price: ₦3.27
Rating: Buy
Price projection: ₦4, ₦4.5, and ₦6
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
Chams retraced to the 50% Fibonacci level on the weekly chart. At this level, the stock initiated its recovery phase associated with strong bullish volume. In line with this performance, the stock’s liquidity and relative strength improved as MACD sustained its bearish divergence signal. This performance usually suggests a potential uptrend.
Daily chart: Trading opportunity
On the daily chart, Chams closed with a strong bullish momentum, gaining 6.17%. In line with this performance, the stock’s liquidity and relative strength improved as MACD sustained its divergence signal. Traders should watch for improved liquidity and a bullish signal from MACD to confirm this uptrend. Given this sentiment, Cham’s potential support levels include ₦3 and ₦2.50, with prices projected at ₦4.00, ₦4.50, and ₦6.00 per share.
