Tuesday, April 10, 2012/ Proshare Research

OKOMUOIL experienced a strong bullish week to record 19.6% gain against 15.7% gain recorded in the previous week- an improved performance and sustained uptrend was observed.

A very strong bargain tendency was observed towards the stock in the week with maximum opening and maximum close.

Also, the stock is in a strong bullish mode as revealed by MACD while the moving averages revealed a bullish trend in both short and mid-long term period. Though, there was a very low volume- this suggests hold position of investors throughout the session while there was strong money inflow towards the stock.

However, the emerging sentiments appeared bearish as the stock is overdue for correction, considering its overbought posture as revealed by RSI buttressed by the price position above upper Bollinger bands.

More so, the last candlestick pattern was a reversal signal which suggests the bears are taking hold of the stock, buttressed with corresponding bearish volume which closed above volume moving average. A short term profit taking season is looming.

Technical conclusion on sentiments: The emerging sentiments appeared bearish, considering the overbought position of the stock while the profit taking tendency already started subtly in the last session as suggested by the candlestick pattern buttressed by bearish volume which closed above moving average. A short term price correction may commence anytime soon. The chart below shows MACD, candlestick, RSI and volume

http://www.proshareng.com/quote/OKOMUOIL

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