Diamond Bank Plc Sentiment Analysis Report – W/E 050412
Tuesday, April 10, 2012/ Proshare Research
DIAMOND BANKexperienced moderate bargain sentiments in the week to record 6.7% gain against the -4.0% loss recorded in the previous week.
More so, the stock recorded positive sentiments in the recent time. Though, on a weak bargain drive- The weak bargain trend suggests a cautious trading pattern. This was revealed in the volume trend, trading above its moving average considerably on a positive and consistent growing momentum, indicating continued accumulation throughout the week.
However, the candlestick pattern suggests possible reversal signal, though the reliability is low and this requires next lower opening position to be confirmed as the price closed flat in the last session. Meanwhile, MACD revealed bullish mode in the last session as the price closed above signal line.
Technically, a cautious approach is advised as the moving average revealed a weak price moving momentum while the price closed neutral in short but stayed bearish in long term. The RSI buttressed the weak momentum as the trend maintained horizontal trend.
Technical conclusion on the sentiments: there was a continued positive sentiment towards the stock buttressed by bullish mode revealed by MACD while the 214% volume surge above volume moving average in the last session showed increased interest towards the stock.
However, a cautious trading is advised as a weak reversal signal is formed according to the candlestick pattern. If the stock opens southward in the next session, the reversal is certain. The chart below shows MACD, candlestick, RSI and volume
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