NGXASI: NGX All Shares
Last week, the NSEASI market closed on a positive note, following the performance of the other sectors. Today, the index traded at the moving average to beat its all-time high and close at 201474.89.
After a brief accumulation phase, the market commenced its markup phase despite global tension. However, other indicators like MACD and volume are still catching up. RSI remains positive, depicting strong momentum in the market. MFI moved upwards from 44.46 to 53.89. This price action indicates that liquidity is returning to the market. So how did other sectors influence NSEASI’s price action?
Market Performance Per Sector
NGXBNK: Banking Sector
Last week, the banking sector index traded over its support level and closed at 1876.90. This price action formed a bullish engulfing chart pattern, signalling a bullish reversal. Today, the bull rally continues with the price trading above the moving average and closing at 1918.11.
An important indicator to note is the money flow index (MFI). The MFI’s performance on the 5-min to 1-hour chart indicates there is liquidity in the market. However, the MFI trades below 50, with a reading of 49.23 on the daily chart. This means that the market is gaining momentum for another bullish run
Despite the price closing above the moving average, MACD remains bearish on the daily chart. Additionally, the RSI indicates that momentum is present in the market, with a reading of 68.13. While volume remains low below its moving average. This price action shows an opportunity for investors to take a position for a pullback.
NGXCSMG: Consumer Goods Sector
The NGXCSMG traded above the moving average and broke its resistance level at 5616.62. The price action conforms to the support level at 5463.29, starting a markup phase. Though the index price closed above its resistance level at 5622.27, the price hasn’t passed its 52-week high at 5640.80. When the price breaks its 52-week high, it will confirm a bull surge.
Volume traded above its moving average to confirm the strength of the bullish sentiment. RSI and MFI indicate a strong market momentum. Finally, MACD remains bearish. With this price action, market players will take advantage of a pullback at 5524.24 and 5541.30 using the ALMA and Bollinger bands’ moving average.
NGXIND: Industrial Sector
The industrial sector index continues to impress investors and traders. The price opened at 8280, which created a gap from last week’s close at 8034.67. This price action validates the attractiveness of this index.
A gap in an uptrend signals a strong bullish sentiment. To confirm this bullish sentiment, investors should observe the following day’s price action. If the price trades and closes below 8280, that means the bullish sentiment is fake. However, if the price pulls back and closes above 8280, the bullish sentiment is strong.
MACD finally cut up with other indicators after signaling bearish sentiment last week. All other indicators signal strong momentum to validate the current market’s sentiments. Given this gap signal, investors have an opportunity to enter at a pullback price.
NGXOGSE: Oil and Gas Sector
Given the current surge in the price of petrol and other crude oil products, the oil and gas sector experienced a strong bearish sentiment in the early trade hours. However, buyers keyed into the market to take advantage of the pullback, closing price above the moving average.
This index is still in its distribution phase, waiting for a trigger to transition into a markup or markdown phase. Given the overall performance of the Nigerian Sector Exchange market, the oil sector index has potential for a markup phase amidst global uprise.
On the daily chart, MACD is bearish while MFI tilts downwards — though above 50. RSI remains high at 89.95, and volume remains low despite the strong bearish sentiment from the market. These indicators tell investors and traders that the market still has momentum, though profit-taking prevails.
NGXINS: Insurance Sector
The NGXINS slightly closed below its support zone between 1307.89 and 1272.42, closing at 1267.58. The initial bullish sentiment couldn’t dominate the bears in the market. Looking at historical data, 1272.42 has been a strong support level for this sector’s index. However, the double-top chart formation at 1360.79 validates this current support level breakout.
The volume for bearish sentiment is high. The other indicators prove that investors and traders are taking out their positions in this sector. MFI remains below 50, MACD remains bearish, and RSI moves towards the oversold region. Investors will continue to watch for a potential entry at support 1195.58 or a bullish engulfing pattern.
Final Thought
The industrial sector continues to influence the NSEASI, as other sectors follow suit. The insurance sector keeps struggling to gain momentum for another bull surge. The oil sector continues to consolidate, yet offers opportunities for investors. Finally, investors will focus on the industrial, banking, and consumer goods sectors due to good sentiments.
