Veritas Kapital Assurance Plc is a Nigerian non-life insurance company whose investment case combines the potential for insurance-market growth, underwriting efficiency and investment income with the challenges of earnings volatility, capital requirements and a difficult macroeconomic environment.
Current price: N1.08
Rating: Buy
Price projection: N2.40 and N3.20
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
Veritas Kapital retraced to the 0.618 Fibonacci level on the weekly chart. At this level. The index is expected to commence its recovery phase. In line with this sentiment, MACD sustained its bearish divergence, preparing investors for a trend reversal. The stock’s liquidity and momentum are low; yet they are gradually recovering. Investors should watch for possible strong support levels to buy into value.
Daily chart: Trading opportunity
On the daily chart, Veritas saw support at the 0.618 Fibonacci level, aligning with the weekly chart’s Fibonacci’s level. Thus, investors should watch N0.70 and N1 as potential support levels, with prices projected atN2.40 and N3.20.
