Cutix Plc is a Nigerian manufacturer of electrical, automobile, and telecommunication wires, cables, and related products. The company was incorporated in 1982 and was listed on the Nigerian Stock Exchange in 1987, making it one of Nigeria’s long-established quoted manufacturing companies.
Current price: N2.45
Rating: Buy
Price projection: N4.5 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
Cutix has formed a bullish engulfing candlestick pattern within the 1.0 Fibonacci level. This performance signifies that the stock has completed a full corrective phase within Wave C of the grand cycle. Given this sentiment, investors should prepare for bullish momentum.
Since Cutix is within its first recovery phase, the bullish volume remained low, with 1.15 million shares purchased. Also, the stock’s momentum and liquidity improved, following MACD’s bearish divergence signal.
Daily chart: Trading opportunity
On the daily chart, traders should watch N2.28 and N2.2 as potential support levels, with price projected at N4.5 and N6. Also, the stock is experiencing profit-taking, which offers investment opportunities. Amid this recovery phase, MACD remains bullish as liquidity and momentum improve.
