Company Overview
ABC Transport Plc is one of Nigeria’s leading road transportation and logistics companies, specializing in intercity passenger transport, cargo logistics, courier services, and regional mobility solutions across West Africa. ABC Transport is publicly traded on the Nigerian Exchange (NGX) under the ticker symbol “ABCTRANS.”
Current price: N7.45
Rating: Buy
Projection: N11.65 (+58.38%) or N15.62 (109.66%)
Technical Analysis
In this report, we shall use the following tools and analyses methods:
- Elliott’s wave theory to understand the overall market sentiment
- Fibonacci tools to determine support and resistance levels
- The Relative Strength Index and volume to evaluate the market’s strength
- The Money Flow Index to determine the market liquidity
- Moving average and MACD to understand the nature of the trend
- Top-down analysis to know the best investment position
Elliott’s wave technical analysis
Weekly chart: Overall market performance
On the weekly chart, the stock remained in the WXY corrective zone. This corrective zone usually comprises three waves each before a 5-wave impulsive uptrend. Currently, the market is in the second wave of Y and expected to pull back so that investors can buy into value.
Daily Chart: Buying opportunity
Using the Fibonacci retracement on the daily chart, two support levels that offer buying opportunities include N7.08 and N6.32. Using the Fibonacci extension, the price is expected to reach N11.65 (100%) or N15.62 (161.8%).
Indicator analysis
Weekly chart: Overall market performance
On the weekly chart, the market recovery is strong. Despite the strong bearish sentiment, MACD sustained its bullish signal. Money flow indicates an increase in market liquidity. Finally, RSI remained solid as price traded above its moving average with a fairly strong volume.
Daily chart: Investment opportunity
MACD’s bearish momentum indicated divergence, which means a potential trend reversal is on the horizon. Although the bullish volume is low, market liquidity and momentum remained solid above their thresholds.
Financial Report
Key insight: The financial report rating is 79% which is good for long-term trading and medium-term investment.
