The Nigerian equity market \u00a0closed in the red after \u00a0strong intraday move and the\u00a0 three trading sessions of bull run, that was attributed to portfolio managers repositioning of their accounts for the month April, retention of the nation securities in the international emerging market index and positive reaction to Nestle Nig plc first quarter impressive earnings report. The marginal pullback on a strong volume is a signal that the bullish upbeat is getting weak.<\/p>\n

The Composite index NSEASI shed 150.08 points to close at 25,715.42 from an opening figure of 25,865.50 representing 0.58 percent decline. Similarly, the market capitalization lost N51.62 billion to close at N8.85 trillion as against opening value of N8.99 trillion. The market breadth was still upbeat as the number of advancers outweighs decliners in the ratio of 26 to 19.<\/p>\n

The volume of trades were up to stood at 330 million shares as against\u00a0 previous days\u00a0 220 million shares, representing\u00a0 50.14 percent increase \u00a0while value recorded N2.26 billion as against N1.50 billion previous day trading level, representing 50.48 percent\u00a0 improvement in value. Transactions in the shares of FBNH, UBA, FIDELITY, DIAMOND and ZENITH topped the activity chart as most traded equities as measured by volume. \u00a0The leading index NSEASI and all sector indices closed in red except for NSECNSMRGDS which improved by 0.21 percent while NSEASEM closed flat. \u00a0Market forces in today trading will determine the next swing.<\/p>\n

NSEASI DAY TIME FRAME<\/p>\n

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Technically, the bullish run is becoming weak as the market is struggling to breakout the March strong resistance level, this may be a sign of reversal as the index touched the 26,000 benchmark before dropping to close lower on a huge volume.<\/p>\n

NSEASI closed above the upper band by 0.9%.\u00a0 Although prices have broken the upper band and an upside breakout is possible, the most likely scenario is for the current trading range that NSEASI is in to continue.\u00a0 Making the picture somewhat unclear is the fact that Bollinger Bands are 40.93% narrower than normal.\u00a0 The narrow width of the bands suggests low volatility as compared to NSEASI’s normal range.\u00a0 Therefore, the probability of volatility increasing with a sharp price move has increased for the near-term.\u00a0 The bands have been in this narrow range for 5 period(s).\u00a0 The probability of a significant price move increases the longer the bands remain in this narrow range.<\/p>\n

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Currently the MACD is bullish since it is trading above its signal line. The MACD crossed above its signal line 3 period(s) ago.\u00a0 Since the MACD crossed its moving average, NSEASI’s price has increased 3.01%, and has ranged from a high of 26,087.04 to a low of 24,806.05. The current value of the RSI is 64.25. Other technical indicators like SO and CCI are reading overbought, signaling sell position. MFI is still indicating that funds are entering the market.<\/p>\n

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Traders should trade with caution while investor\u2019s position taking at this point should be for long term or wait to know the market direction as profit taking will remain upbeat.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Nigerian equity market \u00a0closed in the red after \u00a0strong intraday move and the\u00a0 three trading sessions of bull run, that was attributed to portfolio managers repositioning of their accounts for the month April, retention of the nation securities in the international emerging market index and positive reaction to Nestle Nig plc first quarter impressive […] Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-299","post","type-post","status-publish","format-standard","hentry","category-latest-updates"],"_links":{"self":[{"href":"https:\/\/investdataonline.com\/wp-json\/wp\/v2\/posts\/299","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/investdataonline.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/investdataonline.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/investdataonline.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/investdataonline.com\/wp-json\/wp\/v2\/comments?post=299"}],"version-history":[{"count":1,"href":"https:\/\/investdataonline.com\/wp-json\/wp\/v2\/posts\/299\/revisions"}],"predecessor-version":[{"id":301,"href":"https:\/\/investdataonline.com\/wp-json\/wp\/v2\/posts\/299\/revisions\/301"}],"wp:attachment":[{"href":"https:\/\/investdataonline.com\/wp-json\/wp\/v2\/media?parent=299"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/investdataonline.com\/wp-json\/wp\/v2\/categories?post=299"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/investdataonline.com\/wp-json\/wp\/v2\/tags?post=299"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}