Coronation Insurance Plc is one of Nigeria’s established insurance companies, with an operating history dating back to 1958, when it started operation as West African Prudential Insurance Company and later WAPIC Insurance Plc. The company changed its name to Coronation Insurance Plc in August 2020 as part of its corporate repositioning and broader financial-services strategy. Its shares, however, continue to trade on the Nigerian Exchange under the ticker WAPIC.
Current price: N2.20
Rating: Buy
Price projection: N3.5 and N4.5
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, WAPIC retraced to the 0.5 Fibonacci level and consolidated. This performance suggests that investors are buying into value. The bearish pressure weakened the stock’s relative strength and MACD’s bullish momentum. Despite this bearish performance, WAPIC’s liquidity improved suggesting sustained investor interest.
Daily chart: Trading opportunity
On September 15, WAPIC technical analysis suggested that traders should watch N2 and N1.5 as pontential levels. Today, the stock met stock met support at N2 and closed with a strong bullish candlestick, gaining 10%.
In line with this performance, the stock’s liquidity and relative strength improved. Additionally, MACD initiated its divergence signal, preparing for a trend reversal. Market participants should watch for continuous bullish momentum to determine the stock’s outlook.
