The changing economic fundamentals in an already heated system with hyperinflationary pressure driven by the ongoing government’s economic reforms ranging from subsidy removal and exchange rates unification, which led to imported inflation as a result of high exchange rate and interest rates in the midst of low productivity as all eyes are on the Q2 GDP report from NBS any moment from now.
Also, the mixed corporate earnings released so far had given insight what the market should expect. Market players’ understanding market structure in any market condition will help traders and investors play the market profitably, because trading strategy is in accumulative phase, mark-up phase, distribution phase and decline phase differ.
So, to succeed in any of these market phases, traders must think outside the box to overcome the emotion of fear and greedy. It does mean there is something beyond fundamental, technical and sentiment analyses which is behind the trade. Losing money in trades is beyond reading chart patterns, price actions, trends, resistance and support levels but human problem that has to do with emotion as mentioned earlier.
The way market players approach trading and thinking when preparing for trade matters a lot, because trading is not get rich quick, there is no luck in trading, no strategy works all the time, so unconventional thinking and mindset will help achieve new results in any market cycle, by having a trade plan and following the plan by trading your plan with clear entry and exit strategy when profit target is met. Now that NGX is currently at the distribution phase waiting for a trigger to breakout or pullback. Let the charts and price actions below guide us:
NGXASI Weekly Chart (Opening chart)