NGX Bull Ascendance Persists Amidst Profit Taking, Buying Momentum

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Trading on the Nigerian Exchange started for the year on a bullish note, with indexes stock prices hitting new highs in the midst strong volatility, increasing economic headwinds and expectation of numbers such as the December Consumer Price Index and quarterly unaudited corporate earnings reports from the new week.

Despite the mixed outlook of 2024, discerning investors and smart traders should effectively combine fundamental, technical and sentiment analyses to stay ahead of the market profitably. However, corporate earnings is one factor that will separate winners from losers as the year progresses, with focus on technical analysis to interpret price action on your chart. This is very key, but how you identify companies and trade their shares will determine if you win or lose, and because our sentiment reports gives us real-time insights into how and where market players are putting their money. It is, therefore, possible for us to know ahead of time whether a stock is likely to break out, or down from the value area on an earnings announcement. This is especially as all eyes are on the inflation data, earnings reports and outcome of this month’s Central Bank of Nigeria Monetary Policy Committee meeting. Consequently, as we enter into the second half of January, let the indexes, price actions and coupled chart patterns below guide your buy and sell decisions:

NGXASI Weekly Chart (Opening chart)

NGXBNK Weekly Chart