Zenith Bank is one of Nigeria’s largest and most profitable financial institutions, with a strong reputation for corporate banking, treasury services, digital banking, retail banking, and international trade finance. Established in 1990 and listed on the Nigerian Exchange (NGX) and the London Stock Exchange (LSE), the bank has consistently ranked among Nigeria’s leading banks by profitability, shareholder funds, asset quality, and Tier-1 capital.
Current price: N126.5
Rating: Buy
Price projection: N173.16 and N213.88
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, Zenith Bank is within the 0.382 Fibonacci level. This level offers investment opportunities, as investors should expect a pullback. Following this pullback, the price projections for this stock include N173.16 and N213.88
Daily chart: Investment opportunity
On the daily chart, the stock is within its strong markup phase, attempting to break out of its resistance level at N127.96. This price action offers investment opportunities with N123.04 and N119.06 as potential strong support levels.
Indicator analysis
Weekly chart: Market overview
On the weekly chart, Zenith Bank’s liquidity and momentum remain strong. Following MACD’s momentum performance, the stock is recovering from its strong bearish momentum. Thus, investors should expect a bullish performance
Daily chart: Investment opportunity
Zenith Bank also has strong volume, liquidity, and momentum on the daily chart. Thus, investing after a pullback should be the ideal strategy.
SWOT Analysis
