Based mostly on a technical evaluation of the All-Share Index of the Nigerian Trade, likelihood is excessive that the index will cross the 80,000 mark within the coming days.
By means of shut commentary of the completely different timeframes of the NGX All-Share Index’s chart, there are indicators that the market’s bullish run will persist for the following few buying and selling days.
Picture Caption: NGX ASI 15-minute timeframe
An evaluation of the 15-minute timeframe of the NGX ASI chart reveals a bullish run which is unlikely to retrace within the coming days. Regardless of a really quick correction as noticed within the circle, the retrace is just offering assist for the continuation of the bullish run which is anticipated to be noticed available in the market.
The NGX can be bearish within the coming weeks
Outdoors the projected bullish run of the NGX within the coming days, there’s a projected downward flip available in the market throughout the coming weeks. Based mostly on forming development patterns, it’s anticipated that there can be a retracement to supply assist for a future bullish transfer.
Picture Caption: NGX ASI 1-month timeframe
Wanting on the one-month timeframe of the NGX ASI chart, it’s projected that the ASI could fall even under the 72,000 mark within the subsequent three to 4 weeks. Nonetheless, this isn’t a trigger for alarm, because the transfer is just anticipated to supply assist for the longer term bullish runs the market is anticipated to make in late Q1 2024.
Talking to Adetola Freeman, the Regional Analyst, FBS Africa, he famous,
- “It’s true that the ASI could hit the 80,000 mark within the coming days, nevertheless, underlying financial components may trigger a decline within the enthusiasm of buyers, or strain current shareholders to unload their holdings.”
- He added, “For my part, the truth that the present market outlook is extraordinarily constructive may very well be one other trigger for good cash buyers to take a pause.”
Freeman’s feedback have been in tandem with the projection that the market may go bearish within the coming weeks. Based mostly on the evaluation of Nairametrics, whereas there’s a current wave of “purchase the hype” that induced the market to understand by 4.34% in 2024 alone, there’s quickly to be a wave of misery promoting which will set off a bearish run available in the market.
- Adetola Freeman then famous, “This projected misery promoting will give delivery to a brand new batch of investments within the NGX.” Which we predict would be the new wave of bullish runs to happen later within the yr.
What it’s best to know
Whereas the technical evaluation of a market gives invaluable insights into historic value patterns and traits, it doesn’t assure future market actions. The interpretation of charts and indicators is topic to particular person views and market circumstances, which can change unexpectedly.
Components comparable to elementary evaluation (financial information, firm efficiency) and nostalgic evaluation (investor psychology, market sentiment) considerably affect market behaviour and will override technical indicators.
