NSE Indicators Go Red, As Traders, Investors In Seasonal Profit Taking

Bear ascendency on the  Nigerian Stock  Exchange continues in the Christmas trading week as result of  profit taking activities  from the seasonal rally that was driven mainly by petroleum stocks recently.
This is not unexpected though, as the Christmas celebration kicks in, with some investors selling down to cash out profit and watch for new opportunities depending on where the market swings to as the year winds down.
On Tuesday, the composite NSEASI shed 45.69 points to close lower at 26,540.87 points, from an opening figure of 26.586.56 points, representing 0.17% decline on average volume of trades to continue its bear transition. Similarly, market capitalisation for Tuesday’s trade was lower at N9.13 trillion from an opening value of N9.17 trillion representing a 0.17% loss in value.
Nigerian Stock Exchange Floors
Nigerian Stock Exchange Floors

The decline  in equity prices for the day deepened the negative position of the NSEASI’s year-to-date loss to 7.36%, just as capitalisation  equally adjusted as at that date to N718.52 billion.

Market breadth for the day was flat, with the number of advancers equaling  decliners in the ratio of 21:21 on a mixed sentiment of buy position of 34% and sell volume of 66% of the day’s total volume of transactions.
Volume of trades was down by 15% to 249 million shares worth N3.10 billion as against the previous session’s 293 million units. Transaction value however was up to N3.10 billion, representing a 77.14% increase from the previous trading day’s level of N1.75 billion.
Transactions in the shares of UBA, FBNH, ZENITH, GTBANK and STERLING, topped the activity chart as most traded equities by volume.
DAILY TIME FRAME NSEASI
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The NSEASI on a daily time frame continues a downward trend as it recently formed a double top that supports the pullback on a declining volume of trade. The index rebounded within the bearish channel and equally trending down with the same channel. The moving trend is strong after a strong resistance level of 26,728.80. If market forces go positive this morning there might be a little reversal. But if not, wait for the pullback to reverse before jumping into the market for fresh position.
The momentum and trending ability of the market on a daily time frame is strong as ADX is above 20. The probability of the market remaining in this direction for the rest of the week is high. Traders should watch out.
Watch out for Oando is at the start of a significant breakout
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Currently the calculated sentiment levels of buy position of 67% and sell volume of 33%  as at yesterday support the recent price action  formation  of symmetrical triangle that is a continuation chart pattern as evaluated by Investdata.
This has shown an increasingly positive bias toward Oando Plc. Also, the price action in the company has been moving on up. This is a strong sign for a potential upside breakout. Traders should view this as a bullish trade and make sure it aligns with the overall sectorial mood, and their current positions.

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