The Nigerian Exchange Group Plc (NGX Group) is Nigeria’s leading integrated capital market infrastructure company and one of Africa’s most important securities exchange operators. Following its demutualization in 2021, the former Nigerian Stock Exchange became a publicly listed holding company, creating a modern corporate structure similar to leading global exchange groups.
Current price: N149.80
Rating: Buy
Price projection: N200 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
On the weekly chart, the NGX Group is within its corrective fourth wave. Also, it has completed two waves (wave A and B) and embarks on its final corrective wave (wave C). This final wave should offer investors opportunities to position at a discount price.
The volume for NGX Group is low, followed by low liquidity. However, the stock’s momentum remained solid, sustaining the market’s strength amid the recovery phase. Investors should watch MACD’s divergence signal for continuity and reversal.
Daily chart: Investment opportunity
On the daily chart, NGX Group attempts to complete a 100% corrective phase with wave C. Upon completion, the stock should commence a strong bullish rally. Investors should watch for strong support levels at N120 and N130 with price projection of N200 and N250
In line with this strong bearish sentiment, liquidity and momentum declined, closing at 57 and 50 respectively. Also, MACD’s bullish momentum signals divergence as the stock prepares for a bearish momentum. These conditions makes NGX Group attractive, given its positive outlook.
SWOT analysis
