AIICO Insurance Plc is one of Nigeria’s oldest and most established insurance and financial-services companies. It commenced operations in Nigeria in 1963 and is listed on the Nigerian Exchange under the ticker AIICO. Its business spans Life Insurance, General Insurance, Health Maintenance Organisation (HMO) services and Asset Management.
Current price: N3.91
Rating: Buy
Price projection: N5 and N6
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
AIICO is currently in a strong corrective phase on the weekly chart within Wave y of the grand cycle. This indicates that the stock has potential for a continuous upward rally. The overall volume, liquidity, and momentum are relatively low. However, MACD sustained its bearish divergence signal, preparing investors for a potential bullish rally
Daily chart: Investment opportunity
Investing in AIICO requires a medium- to long-term perspective. On the daily chart, the bearish momentum is strong. However, the stock displayed signs of recovery in money flow, and RSI regained momentum with strong volume.
SWOT Analysis
