Swerving further south, the performance index of the Nigerian Bourse gave up another 73Bpts to close today’s trading activities at 27,503.81 point from 27,707.12. All observed market indexes ended with the bear as shown in index movement table.
Today’s trading activities produced 10 advancers and 26 lagers. NSEASI YtD return is currently -3.97% while the Market Capitalization YtD return stood at –N402.891 billion.
The combination of the last three days candlestick pattern has generated what is technically referred to as 3 black crows. Three black crows candlestick pattern is considered a relatively reliable bearish reversal pattern. Consisting of three consecutive bearish candles at the end of a bullish trend, the three black crows signals a shift of control from the bulls to the bears. In other words, it confirms the strength of the bears as they force price through a wide range without relinquishing any ground to the bulls.
Please note that if this pattern is not corrected by some strong fundamental events, the equities market will pause its north journey and take a bold bow to the bears. Recall that the market is currently weak and has maintained the position for some months; this has heightened traders’ sensitivity such that slight fundamental news will attract very sharp response from the investing public.
We are of the opinion that if the pattern finally takes full control of the market, selling down on positions for new entry at lower low is an intelligent investment decision.
On the strength of the above position, we reiterate our position that traders should pay more attention to their trades and seriously mind their stops (up (+) or down (-)). This is will help in avoiding a bull trap situation. Investment greed should be avoided at all cost.
Volume Index for today’s activity is 0.69 while buy volume and sell volume is estimated at 0% and 100% respectively.
Thank you for your good advice.It helps to focus on important active shares.