A recovery wave into 2017 to recoup about 43.17% decline from 2014 peak of N27.40 may be strongly underway as the price action of the bank is trying to break out of the falling channel and the triangle. The stock entering wave three after many pullbacks and retracement supports the uptrend especially as earnings season kicks off very soon.
The recent breakout of the flag chart pattern, also confirmed continuation of trend as price action is still trading above its 20 and 50-Day moving average at N15.57.
Traders should watch out for the first resistance level at N16.80 and second resistance price of N18.20 or reverse down to first support level at N14.75 and second support at N13.80 respectively. The strength of the current trend and direction is weak on the weekly time frame, but strong and rising on daily as ADX is above 20.
Looking at the technical indicators, Zenith Bank closed above the upper band by 2.3%. MACD is bullish while RSI is at 56.41 which are at increasing strength region. But momentum indicators are signaling buy, however watch it, as MFI on a daily and weekly time frame is looking up, indicating that funds are entering the stock.
The weekly buy volume of the total transactions was 76%, while sell position was 24%. Also, Friday’s position for buy was 91% and 9% sell volume.
Fundamental factors: Market Capitalisation- N488.84 billion; Price Earnings Ratio- 4.88x; and Dividend Yield, 10.21%.
Meanwhile, gross income is projected to grow by 9.3% this year and another 10.4% next year; Earnings is estimated to increase 20% this year. There is Positive Analysts Sentiment for the stock. Our recommendations is buy and hold.
The bank recently notified the investing community of its board meeting to discuss the 2016 financials and possibly recommend a final dividend for approval by its shareholders at the annual general meeting. Since then, the bank’s share price has continued to look up. The ongoing bull transition as revealed by price action has strong upside potential that is supported by strong fundamental and impressive numbers.
The bank has broken out of the falling trend line to form a bull channel on a strong positive sentiment that support uptrend but the seeming double tops may slow down this move, depending on market forces. It set to recover of 47.91% decline from 2014.
Traders should watch for a breakout or reversal at this point, if it breaks out the first resistant level of N5.30 per share and second resistant level of N5.56 or reverse down to first support level at N4.60 and second support point at N4.44 respectively. The stock is trading above its 20, 50 and 100-Day moving average at N4.99 per share.
Looking at the technical indicators, UBA closed above the upper band by 30.7%. Although, prices have broken the upper band and an upside breakout is possible, the most likely scenario is for the current trading range that UBA is in to continue. MACD is bullish since three trading days and RSI is reading 71.06, which indicates overbought. All momentum indicators are signaling buy, except for RSI and SO. MFI is looking up on a weekly time frame but down on daily time frame. The weekly buy volume of the total transactions was 83%, while sell position was 17%. While Friday’s position was 94% for buy and 6% sell. The current trend is weak on weekly basis as ADX is below 20, but daily time frame ADX is strong and above 20 with +D1 is 40.80 and –D1 at 7.47
Market Cap N181.03 billion, P/E 3.47x and Dividend yield 8.22%. Gross Income is expected to grow by 12% this year and another 13.2% next year, Earnings is estimated to increase 18% this year. There is Positive Analysts Sentiment for the stock. Our recommendations is buy and hold.
The recent break out in Access Bank is a confirmation of investors’ interest in the bank’s shares as the market expects its full year 2016 earnings report soon. The possibility of pullback back is high before the audited result finally hits the market due to profit taking.
The break out the symmetrical triangle chart pattern that confirms this bullish run in Access Bank is likely to continue on a strong bullish sentiment of 94% buy position and 6% sell volume. The price action has broken its one-year resistance level of 6.50 on a strong momentum and trend direction as ADX is above 20 on a weekly and daily time frame.
The stock is currently trading above its 50 and 100-day moving average. Traders should watch for a continuation of trend to the first and second resistant level at N7.02 and N7.18 respectively or reversal down to first support level at N6.40 and second support level at N6.20
Looking at the technical indicators, ACCESS closed above the upper band by 33.7%. Although prices have broken the upper band and an upside breakout is possible, the most likely scenario is for the current trading range that ACCESS is in to continue. MACD is bullish and just crossed above its signal line a trading session ago. RSI is reading 72.03 which signifies overbought. RSI and SO are indicating SELL, MFI is looking up to signal that funds are entering the stock. Last Friday’s buying position was 100% and selling, 0%.
Market Cap N193.52 billion; P/E 3.40x and Dividend yield 4.73%. Gross Income expected to grow 20% this year and another 23% next year, Earnings is estimated to increase 36% this year, Positive Analysts Sentiment for the stock. Our recommendations is buy and hold.