Traders Watch 30

The first trading week in the New Year closed on a negative note, a pattern noticed in the comparable period of the past two years of trading. All the market indices for the period closed lower as they came under selling pressure from profit takers cashing in on the end of year rally, as investors exited to meet financial needs of the beginning of the New Year.
Noteworthy during the period was the release of the Purchasing Managers Index (PMI) of 52% in December the first positive one in almost 11 months in 2016.
The composite NSE All-Share Index shed 623.23 points, closing the first week of 2017 at 26,251.39 points, from an opening figure of 26,874.62 points, representing a 2.32% decline on a huge volume of trades, to halt the December 2016 rally. The buying position was a mere 7% of total volume traded for the week and 93% selling volume.
Market breadth analysis shows a negative sentiment as 18 equities recorded gain, while 31 others lost value for the week owing to selling pressure on the market for the period.
NSEASI WEEKLY TIME FRAME

The NSEASI on a weekly time frame has pulled back from the last trading week of 2016 attempt to break out of the bearish channel as a result of high selling tendency from profit booking to remain in the channel and symmetrical triangle which is a continuation of the chart pattern.
The current pullback of index revealed the high selling pressure in the market at this period of the year creating opportunities for smart investors to buy into earnings expectations. The momentum and trending ability of the market on a weekly frame is weak as ADX is below 20 for this time while on daily time frame is strong.
Traders should be on their guard as the pullback is likely to continue if the expected Q3 results for March accounts in this January go below market expectation. The first resistance level at 26,425.17 and the second points to 26, 707.20, any move down 26,085.5 and 25,982.52 respectively.
Looking at technical indicators, the NSEASI closed above the upper band by 43%, while MACD just went bearish in the last trading day. RSI is reading 47.54 and above the oversold region. Money flow index is looking down, indicating that funds are leaving the market. The momentum indicators are mixed as SO, MACD and CCI are signaling sell, while RSI is indicating buy.
FCMB

FCMB moved 6.36% higher in the past week on a positive sentiment to break out the triangle on expectation and low price attraction.
Traders should watch for a continuation of uptrend to first resistant level at N1.22 and second resistance level of N1.27 or reverse down to touch first support level at N1.11 and the second support level at N1.04 per share. Also, the stock is trading above its 50-Day moving average at N1.17 per share. The current trend is strong above ADX 20.
Looking at the technical indicators, FCMB closed above the upper band by 10.3%. This, combined with the steep uptrend, suggests that the upward trend in prices has a good chance of continuing. However, a short-term pull-back inside the bands is likely. MACD is bullish; RSI is reading 67.69, which is overbought. All the momentum indicators are mixed as RSI and MACD are signaling buy, MFI is looking up, indicating that funds are entering the stock. The buy-to-sell volume indicator reveals 100% buy volume of the stock.

UACN Property

UACN Property Development Company Plc moved 14.5% higher over the past week on a positive sentiment, owing to its low price attraction to traders. But in the last two years, the stock has continued its downward trend which resulted from a combination of its poor financials and the market direction. Traders should watch for first resistance level of N3.08 and second resistance level of N3.18 as price action has formed double tops or reversed down to touch first support level at N2.80 while the second support level will be at N2.68 per share. The stock is trading above its 20 and 50-Day moving average at N3.00 each. The current trend is strong on daily and weekly time frame.
Looking at the technical indicators, UAC-PROP closed below the upper band by 1.0%, MACD is bearish, RSI is reading 73.74 which is overbought. All the momentum indicators are signaling buy, MFI is indicating that funds are exiting the stock. The buy-to-sell volume indicator reveals 100% buy volume of the company.

OANDO

Oando fell 0.21% over the past week on a mixed sentiment amidst a positive outlook of upstream oil companies that are into crude export. Oando is one of the 18 Nigerian companies that emerged in the Nigerian National Petroleum Corporation latest bid round announced last week. Its price action has formed a triangle chart pattern that supports trend continuation. The trend momentum and direction is mixed as ADX on weekly basis is above 20, while the daily time frame is below 20.

Traders should watch out for a breakout at the first resistance price level of N5.01 and second resistance level of N5.20, any move down to the first support level of N4.30 and second support level at N3.99. The stock is trading below its 50-day moving average.

Looking at technical indicators, Oando closed below the upper band by 7.7%. MACD has been bullish for 28 trading days. RSI is reading 56.90, while other momentum indicators like MACD and RSI are signaling buy and SO and CCI are still indicating sell. MFI is looking up, to indicate that funds are entering the stock, with buying volume position of 100% and sell position of 0% for the week.

UCAP

UCAP moved 12.65% higher over the past week on a positive sentiment, owing to its earnings expectation in this season. The company’s almost one and half-year up trend was as a result of mixed financials and the market direction.
Traders should watch for first resistance level of N3.10 and second resistance level of N3.25 or reverse down to touch first support level at N2.89 and the second support level will be at N2.69 per share. The stock is trading above its 20 and 50-Day moving average at N3.00 per unit. The current trend is strong on daily time frame as ADX is above 20.
Looking at the technical indicators, UCAP closed above the upper band by 11.4%. Although prices have broken the upper band and an upside breakout is possible, the most likely scenario is for the current trading range that UCAP is in to continue. MACD is bullish, RSI is reading 69.59 which is overbought. The RSI and MACD indicators are signaling BUY, MFI is indicating that funds are entering the stock. The buy-to-sell volume indicator reveals 100% buy volume of the stock for the week.