Presco Plc is one of Nigeria’s leading integrated agro-industrial companies specializing in oil palm cultivation and the production of specialty fats and edible oils. Established in 1991 and listed on the Nigerian Exchange (NGX) in 2002, the company operates one of the country’s largest integrated oil palm businesses, covering the entire value chain from plantation development to refining, fractionation, packaging, and distribution.
Current price: N2070
Rating: Buy
Price projection: N3000 and N4000
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, PRESCO completed a full market cycle and it’s expected to experience a strong corrective market. Given this sentiment, investors can pay into value, as PRSECO is a fundamentally strong stock. Volume remains low on the weekly chart as MACD’s bearish mometum strengthens. Also, the market’s liquidity and momentum sustained their decline.
Daily chart: Investment opportunity
On the daily chart, the stock’s liquidity and momentum are low amid corrective phase. Plotting the Fibonacci retracement on wave 5, investors should watch N1500 and N1700 as strong support level.
SWOT Analysis
