NASCON experienced continued sell tendency and sustained bearish sentiments in the week to record -14.1% loss as against -22.4% loss recorded in the previous week – the price correction continued to dominate trading pattern in the week as strong sell tendency was observed towards the stock. The stock has booked -33.33% loss in the last two weeks, after recording an 11-month high of N6.30kobo on 18th May 2012.
The stock appeared depressed to close below oversold region as revealed by RSI while the position of the MACD at oversold region buttressed this further. Meanwhile, the stock closed neutral in short term period and remained bullish in mid-long term period, indicating the stock is yet to attain a full bearish mode - an indication that the price correction trend may continue.
Also, the bearish volume recorded throughout the week reflected the unrelenting sell tendency as noted above while a cash outflow persists, as revealed in the money flow index (MFI).
Technical Conclusion on Sentiments: The stock has a moderate possibility of extending the price correction in the coming periods as investors’ sentiments toward the stock remained bearish. However, a price pull-back is not in doubt as the depressed posture of the stock at the oversold region could incite possible bargain. The chart below shows MACD, candlestick, RSI and volume analysis.
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