Technical View of the Market on Monthly Time Frame

In the Nigerian stock market, the month of March is the peak period of the earnings season which suggests that as traders, you should be in the market before now to benefit from the earnings season momentum. As quarterly earnings reports before now has been in uptrend.
On a monthly basis energy behind the general market is high despite being flat on low volume traded for the period as shakeout and pullbacks forced many who had taken position at the peak to hold and watch the correction wave that seem to be easing off gradually.

Outlook and Expectations in March and April

The economic outlook remains strong. There is an improving labour market with the rate of layoffs reducing to support growth in household incomes and consumer spending, solid economic recovery, as well as the manufacturing and agricultural sectors should lead to further gains in exports. The upbeat business sentiments and strong sales growth will likely continue to boost business investment.
In such an environment, we anticipate that inflation will continue to slow down, possibly move into the single digit region, just as is being envisaged by the CBN governor. Also the expected reduction in MPR should increase productivity and impact positively on businesses to support real growth. But before that can happen, we call on the Federal Government and the National Assembly to resolve their differences over the status of Ibrahim Magu, chairman of the Economic and Financial Crimes Commission (EFCC), which has prevented the approval of nominations to occupy the heavily depleted board of the CBN and members of its Monetary Policy Committee (MPC).
According to Ambrose Omordion, Chief Research Officer of Investdata Consulting Ltd, “the stand-off has resulted in the inability of the committee to hold its first meeting of the year in January. The law requires that the committee meets six times a year, hopes for an emergency meeting in February was also dashed, just as the second meeting of the year in this month is already seeming like a mirage unless a miracle happens soon enough.”
The PMI for February according to CBN report stood at 56.3 point to indicate that the manufacturing sector for straight eleven months remained above the 50-point mark.
Investor should invest wisely and stop panicking because of the up and down movements of stock prices.
Investor should invest wisely and stop panicking because of the up and down movements of stock prices.
As the last month of the quarter kicks off, there is high expectations of the 2017 ful-year results, just as fund managers are reshuffling their portfolios to meet targets and earn commission for Q1.
The table below shows march market performance for more than two decades, being the peak of earnings reporting season of every year were more companies with December 31 year end release their numbers to the market. With stronger compliance noticed from 2014 as the NSE management began to strictly enforce sanctions for non-compliance with post-listing rules.

In the days and weeks ahead, expect volatility and repositioning to continue, while profit taking will reduce on the strength of expected payout and earnings surprises.
However, we would like to reiterate that investors should not panic but go for equities with intrinsic value, especially during this season when dividend payment is ongoing.
We advise investors to allow numbers guide their decisions while repositioning for the year trading activities, especially now that stock prices remain volatile amidst improving company, economic and market fundamentals.
It is time to combine fundamentals and technical tools to take decision by knowing the support and resistant level to reposition or exit any position. A stock market is in cycles. You must know the cycle it, or particular stocks therein are to successfully manage your trading and investment risk. For stocks that should be on your shopping list to buy in these seasonal changes as the year unfolds, sign up to INVESTDATA BUY AND SELL signal setup by calling 08032055467.
Get your home study pack of the INVEST 2018 Traders & Investors Summit and ride with the current recovery on Nigeria’s stock market and economy, thereby ensuring that you invest and trade with knowledge. You can also access stocks analysed in the home study pack of the INVEST 2018 traders and the investors’ summit held on February 24, 2018, including the 15 stock-picks for 2018 are available now to guide your positioning as trading for the year.
Comprehensive training materials on stock Trading and Investing for Financial Independence series are Available, you can play and watch on your mobile phone, laptop, desktop and TV set. Kindly call or send yes to 08032055467, 08028164086 or 08111811223.
Meanwhile, a big THANK YOU to facilitators and participants that made the Chart Summit over the weekend a huge success. The eyes of participants were opened to the three tents of technical analysis and how it can enhance traders income, as well as simple trading indicators and tools for successful traders were revealed. Charting of the NSE Index on short and long term direction movements were carried out to guide investors and traders using technical indicators to know the energy behind funds entering the market, or individual stocks and when such funds begin to exit.

Here are some of the great feedbacks from the just concluded Chart Summit:

I have not seen a more lucid, concise, organized & insightful trading and investing educational presentations than the chart summit. All the speakers opened my eyes to how to manage risk using TA, despite the fact that I have been playing the market for 21 years. Mr Ambrose thank you. Please keep this good work you are doing for Nigerians.
Ikechukwu Olisa, an investor

Ambrose and Tunde’s presentations were the simplest, clearest and best understood of the many that I have heard in my trading lifetime of nearly 25 years, please keep it up. Thanks for your time
Oyebola Ademola

The Invest 2018 home study pack content was what attracted me to attend this chart summit today, it was so good that I just couldn’t stop watching. Today’s chart summit was the best class I have attended in over 10 years. It’s going to make a big difference in my trading.
Patrick Udo

Thanks Mike for opening my eyes to risk management and portfolio selection using Technical Analysis tools. Thanks to investdata for putting chart summit together for novice and advance traders. It was well presented and right to the point. Again thanks so much for the beautiful presentation. It’s superb.
Musa Ahmed

Chart Summit on technical analysis for novice and advance traders home study pack will be available on Friday, March 2, 2018, for those who have booked for the USB, you can play it on your phone, TV and laptop. Those interested in the pack should send ‘Yes’ or call any of: 08032055467, 08028164086 or 08111811223.

Ambrose Omordion
CRO | Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 0803205546