Chemical and Allied Products Plc was incorporated on September 21, 1965 and listed on the Nigerian Stock Exchange, now the Nigerian Exchange, on May 24, 1978. The NGX classifies the company under Industrial Goods, with a building-materials sub-sector designation. Its stated business covers the manufacture and marketing of paints and the sale of fire-extinguishing products.
Current price: N108.50
Rating: Buy
Price projection: N150 and N250
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
CAP commenced its recovery phase after meeting support within the 0.618 level. In line with this performance, its volume, liquidity, and momentum improved. Notable, MACD sustained its divergence signal, preparing investors for a trend reversal.
Daily chart: Investment opportunity
On the daily chart, investors should watch N100 and N85 as potential support levels. Currently, the stock’s volume, liquidity, and momentum remain solid. MACD also commenced its bullish divergence signal, suggesting a potential pullback for investors to buy into value. The price projections for CAP include N150 and N250 each.
