NGXASI: All Share Index
The All Share index continued to show resilience above its moving average, depicting the Nigerian Exchange’s positive outlook. The All-Share index slightly surpassed its 200,000 bps milestone, completing the Elliot wave formation.
Market analysts use the Elliot wave to understand the psychology of traders and investors. They also use it to predict a market outlook. In NGXASI’s case, this wave signals a potential bull surge that could break its all-time high (204928.11 bps)
Volume validates the index’s Elloit wave formation by confirming the market’s bull sentiment. MACD remains bearish, indicating that investors have an opportunity to participate. Finally, MFI and RSI indicate steady liquidity and momentum in the market. How’s insurance leading the NSEASI?
Index Performance Per Sector
NGXBNK: Bank Sector Index
The banking sector traded near its resistance level, indicating a potential market recovery. With this price action, market analysts anticipate the index will surpass its resistance level, signalling another bull run. However, one must factor in other indicators to get a clearer picture of this index’s performance.
While other indicators validate this market recovery, the Money Flow Index (MFI) closed slightly below 50. This index performance is due to the activities of market players in the lower timeframes. Profit-taking was predominant on the 1-hour chart before the market recovery. Thus, given the strong volume on the daily time-frame, a bullish run is on the horizon.
NGXCSMG: Consumer Goods Sector Index
The consumer goods index traded below its moving average, indicating a strong bear sentiment. Despite this performance, the index closed bullish, which signals market recovery. Since the index hasn’t broken the distribution zone support level, it’s expected that the market will maintain its solid momentum.
The indicators for this index remain mixed. Volume confirmed that the NGXCSMG is recovering, and MACD remained strongly bearish. The overall outlook of this index is bearish. MFI fell slightly below 50, signalling massive profit-taking, while the RSI depicted sustained momentum in the market.
NGXIND: Industrial Sector Index
The industrial sector index remained strongly bullish. However, the index has started showing signals for a potential pullback. Thus, market players will observe changes in this index’s performance.
The indicators in the stock offer a clear message: strong bullish sentiment. MFI and RSI remain high at 95.53 and 90.25, respectively. The volume for this bull sentiment is low; however, the overall trend dominates the signal report from volume.
NGXOGSE: Oil and Gas Sector Index
The oil sector index continues its recovery below the moving average. Since the index hasn’t closed below 4307.87 bps, market analysts will consider that basis point level as the new support.
Volume is low for this index, while RSI and MFI depict sustained momentum in the market. The market closed partially indecisive as buyers and sellers struggled to dominate. Yet, volume remains bullish and at the same level as yesterday’s performance. This performance informs market analysts that buyers remain dominant, despite low volume.
NGXINS: Insurance Sector Index
After weeks of bear domination, the insurance sector index closed above its moving average at 1292.85 bps. To confirm the strength of this potential bull rally, the index needs to break the resistance level of its support zone at 1307.89 bps.
The volume indicator validated the strong bullish sentiment for this index three days ago. Thus, today’s performance solidifies this sentiment by trading above its moving average. MFI tilted upward, which means liquidity is returning to the market.
RSI is within the overbought and oversold region, which is attractive for investors to participate in this upcoming rally. Finally, while MACD remains bearish, there are signs of recovery.
Final Thoughts
The NSEASI remains strongly bullish, following the insurance performance index. Other sectors show signs of recovery amidst profit-taking. The insurance sector has better potential and room for participation. Finally, the industrial sector continues to show signs of a potential pullback
