Analysts at Meristem Research have released stocks investors to watch out for in this trading week at the Nigerian Stock Exchange (NSE).
“Beyond fundamental valuations, stock price movement is also tied to investor sentiments. This report seeks to envisage trends and patterns using technical analysis indicators.
“Therefore, our intention with this report is not to give stock recommendation which is largely based on fundamental analysis, but to provide an alternative perspective to the outlook of market and stock prices & volume behaviour,” Meristem Research warns.
Below are the stocks:
CILEASING
In the just concluded week, the stock gained 12.26% WoW, pushing its YtD return further into the positive territory at 138.00%.
The RSI at 72.84 indicates the ticker is currently at the overbought region.
Continued upward movement is however supported by the currently bullish candlestick and the MACD which shows positive momentum.
While it is expected that the stock may continue on its positive path for the first few trading days, a negative close is highly anticipated given the likely sell pressures to be experienced on the ticker on the last trading days.
GTBank
The ticker lost by 4.00% in the week, to close at NGN37.00 settling its year to date return at 49.80%.
The RSI at 36.13 signifies that the ticker is very close to the oversold region. However, the MACD shows increasing negative sentiments on the counter.
Also, the candle shows that there are negative sentiments on the counter.
Given that the stock is currently trading close to its 5-yr high, there might be a decline in the price of the stock at the beginning of the week.
NEIMETH
The ticker led the losers’ chart last week, shedding 15.66% to close at NGN0.70.
The RSI at 23.74 signifies that the ticker has slipped into the oversold region. The MACD however, still shows strong negative momentum the counter.
The stock appears to be nearing its 4-month support zone of NGN0.64-NGN0.68. Furthermore, the breakout from below the lower Bollinger band signals a reversal in the current bearish sentiments.
Given the significant WoW loss, speculative activities may indeed lead to an upturn in the stock’s price however the company’s weak fundamentals may weigh on any expected rebound.
Zenith Bank
Following a WoW decline of 4.25%, the ticker closed the week at NGN22.10.
The RSI at 37.45 shows that the stock is approaching the oversold region.
The bearish candlesticks show that sell pressures are still quite strong on the counter. The MACD also indicated widening negative sentiments.
It appears that the downward trend on the counter may persist for a couple of trading sessions. However, given the strong fundamentals of the company, we expect bargain hunting to ensue.
NEM Insurance
Gaining 19.00% WoW, the counter emerged as last week’s top outperformer.
Although the RSI at 69.51 signifies that the stock is on the verge of crossing into the overbought region, the stock’s price graph still shows bullish candlesticks.
Similarly, the MACD signals growing positive momentum on the ticker. The breakout above the upper Bollinger band however signals a reversal in the current buy sentiments.
It is expected that the positive momentum towards the will linger for a short while however profit-taking activities are also highly likely at or shortly before the close of the week.
Source: Meristem Research
