NGXASI: All Share Index

The composite All Share index remains resilient despite mixed sentiments from other sectoral indices. The index maintains its Elliot Wave formation, preparing for another bull surge.

This image illustrates the Elliot Wave formation from yesterday’s market performance. The performance of the other sector index helped maintain the sentiments reflected by this technical tool. In an Elliot Wave, an upward trend occurs when it reaches the “C” wave point.

The indicators for this index remain bullish, although the MACD remains bearish. The overall market is in its corrective stage, characterised by sustained liquidity and momentum. This performance further validates the sturdiness of the NGXASI. How have other sectors influenced the Nigerian Bourse?

Index Performance Per Sector

NGXBNK: Banking Sector Index

Buyers tried to dominate in the NGXBNK; however, the sellers remained dominant. The index closed slightly below its moving average at 1909.07 bps. With this performance, market analysts will watch for further index action to gain an overall understanding of the market. Currently, the index remains within its resistance level with the potential to trade below its moving average

According to volume, the bearish sentiment for this index is low. RSI remains underneath the overbought region, and MACD signals a bear market. These indicators indicate an investment opportunity. MFI solidifies the analysis for market players by indicating a slight increase in liquidity. This indication validates the sustained interest of market players in this index.

NGXCSMG: Consumer Goods Sector Index

The consumer goods index started bullish but closed with strong bearish sentiment. The index continues to distribute below the moving average. Since the index hasn’t broken its support level at 5463.29 bps, the sentiment for this stock is relatively positive.

The volume of bearish sentiment is low compared to the volume of bullish sentiment. This signals that investors are buying into value while traders are taking profit on low timeframes.

RSI and MACD remain within the buying opportunity zone for investors. Finally, MFI finished flat at 48.62. MFI has the potential to surpass 50 because on the 1-hour timeframe, MFI indicated strong liquidity in an uptrend pattern, as shown in the image below.

NGXIND: Industrial Sector Index

The industrial sector has entered its corrective stage, inviting investors to buy into value. The lower timeframes and indicators signaled a potential pullback in this index. The candlestick indicating this bearishness is small. This performance means the bullish sentiment for this stock remains high and attractive.

Despite the brief pullback, the NGXIND remains strongly bullish. Market analysts expect more profit-taking occurrences in this index. The industrial sector index has been attractive for investors and traders; thus, before it crosses its 9,000 bps, a distribution phase is vital.

NGXOGSE: Oil and Gas Sector Index

The oil sector index closed indecisively at the midweek, with buyers and sellers struggling to dominate the market, yet none succeeded. At the moment, the price remains within the index’s new support at 4307.89 bps, depicting continuous market recovery

Though the index trades below its moving average, MFI and RSI indicate resilient market liquidity and momentum. On the 1-hour timeframe, the index traded above its moving average, which is why volume indicates a low bullish sentiment. Overall, investors are risk-averse given the current global tension between Iran and the USA.

NGXINS: Insurance Sector Index

The insurance sector has been attracting traders through its recovery phase. On Wednesday, the index traded above its moving average but met resistance at 1307.89 bps. On the low timeframe, it indicated that traders briefly took profit, which is why there was resistance. When the index breaks the resistance of its support zone, it will indicate a full market recovery

The indicators on the daily chart indicate a gradual market recovery. RSI and MACD are leading the recovery phase for this index. Volume already indicated an upcoming markup phase. Finally, MFI reflects the profit-taking that occurred in the lower timeframes.

Final Thought

The Nigerian Bourse should remain with recapitalization and earnings reports on the horizon. The insurance sector remains attractive for traders but hasn’t fully recovered. As expected, the industrial sector has commenced its distribution phase. Finally, other sectors reflect mixed signals due to global tensions and price uncertainty. Investors and traders will be more risk-averse during this period.