As the bull attempted quick return, equities trading on the floor of The Nigerian Stock Exchange added 51Bpts as it rounded up trade at 43,119.00 from 42,898.90. It was a mixed performance amongst the observed market indices as shown in the index movement table. After today’s positive ending, total points added to the market trading points in the month of January now stood at 1,275Bpts.
Value gained by the market capitalization of the listed equities during today’s trading activities was N78.849 billion, same as 51Bpts above the opening value. Meanwhile, trading activities for the day produced 26 advancers and 26 lagers. NSEASI Year to Date gain is now 12.75% while the Market Capitalization Year to Date gain stood at N1.837 trillion same as 13.50% above the year’s opening value.
Observing the candlestick pattern representing today’s trading activities, one cannot fully conclude that the bull had finally exited the market arena. For example, traders’ actions through the day generated a hanging man candlestick pattern. Technically, this signifies possible end of an uptrend. Nevertheless, the fact that the candle is green weakened this assertion. In other words, a red hanging man would have strongly established this possibility. Further weakening this is the fact that today’s gain completely swallowed all lost points on Friday. It is important to emphasize that the Hanging Man pattern is a warning of potential price change, not a signal, in and of itself, to sell, thus we recommend that traders should wait for confirmation on the next trading day.
Furthermore, to be on a safer side, traders should explore tools that can timely identify diversion between price and volume momentum (e.g Money Flow Index), this will definitely inform the strength of the fund currently driving the market. Safe Trade.