Nigerian Equity Market Watch-List For May 22- 26

By Adeshina Adetunji

Market Watch
Guarantee Trust Bank Plc
In the past week, the share appreciated by 9.75% but the volume compare to last week declined by 18.72% also reacting at N32 a key resistance point. Current price range of N31.5 – N32 is the 127.2% Fibonacci extension (profit taking) level.
Price correction (pull back) is expected to around N27.50 – N28.

Bottom-line:
We expect pullback to between N27.50 – N28 before a new resumption of the upside rally. On the other hand, a break above N32 on stronger volume towards the bid side would see a steep upside rally thus we would look out for a retest of N32 before accumulating.

FBN Holding Plc
The share price continued its upside rally for third consecutive week. Though there were heavy decline in the volume traded compared to previous week as buyers and sellers were indecisive on the trend for the stock (an early signal of a reversal in trend)

Looking at the daily timeframe, we see it trading in the bullish zone (Bollinger Band).

Bottom-line: We expect the stock to be in a range for awhile around the N4 – N4.20k zone. As such we recommend holding the stock.

Oando Plc
An interesting speculative stock which has seen favorable bargaining activities from the investing communities.
Friday ended bearish forming a lower high; we believe smart money are offloading to late comers.
On the weekly timeframe the stock is at the overbought level (RSI 14 weekly period at 80 level) and met resistance at critical technical level of N10.50 (a strong distribution level).

We expect a correction to drive the equity to N8. On the other hand, a break above N10.50 would see the share rally towards N16 (immediate resistance level)

Flourmills Plc
The weekly chart shows indecision between the buyers and sellers on a much lower volume compared to previous week volume.
The Bollinger band indicator is still in a tight range.
Technically, we may expect a selloff in the coming week but in an indecisive case we need confirmation on next week candle formation.

Bottom-line – we should closely watch the daily sentiment to gauge the behavior of the market and determine whether accumulating during the sell off would be good at around the N18 mark.

Zenith Bank Plc
Zenith has always seen a resistance (selling sentiment level) at N18 in 2015, 2016 and now 2017
The interesting issue in last week’s trading activities is that the offer side has an edge over the bid side
Weekly candle formation shows a reversal candle so the prospect of a pullback from this level is high

Bottom-line: Would history repeat itself in Zenith bank share price trading activities in the coming week? This we expect as N18 resistance (sell sentiment level) to hold.

DISCLAIMER
Adeshina, Trendonomics or anyone involved with Trendonomics Resources Company will not accept any liability for any trading loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
For more analysis, realtime trade calls and Technical analysis education of stocks both for Nigerian Equities Trading, FX, Commodities and other global markets, mail trendonomicsng@gmail.com or contact 09092133294 to join our mailing list.

Adeshina Adetunji, CFTe
Technical Analyst/Strategist
+2349092133294, +23480-3227-6111
Skype: adeshina.adetunji

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