Fidelity Bank Plc is a Nigerian commercial deposit-money bank with operations focused on retail banking, SME banking, corporate banking, private banking, diaspora banking, and agriculture/export banking. The bank began operations in 1988 as a Fidelity Union Merchant Bank, converted to commercial banking in 1999, and became a universal bank in 2001. In July 2023, Fidelity completed the acquisition of 100% of Union Bank UK, giving it a presence in the City of London and an avenue for cross-border banking.
Current price: N20.05
Rating: Buy
Price projection: N28 and N35
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
On the weekly chart, Fidelity is recovering after a strong ABC corrective phase. In line with this performance, volume remained low. Also, the stock’s liquidity and momentum improved, yet remained low. Notably, MACD initiated a bearish signal, offering buy-in opportunities.
Daily chart: Investment opportunity
Using the Fibonacci retracement tool, investors should watch N18 and N19 as potential support levels as the market remains corrective. In line with this sentiment, the price projections for Fidelity include N28 and N35
