The NSEASI has so far survived the Covid 19, depressed Crude Global oil prices have completely derailed the economy’s already-fragile recovery from its 2016 recession, Devaluation of the NAira due to tighter FX liquidity
Job losses and lower remittances are poised to hit private consumption hard, while investment activity will suffer amid project delays and uncertainty. The oil-price shock blow to the country’s FX earnings and fiscal revenues are major risks ahead.
Yes, the Nigerian economy is still very soft, as it his right now. However, lets not forget that the stock market is a discounting mechanism for future valuation and not a feedback mechanism for current valuations. As such, trying to line day to day economic numbers with what exactly is happening in the stock market typical ends in confusion for most people as share prices spiked within these period.
Today’s market action is totally technical in nature yet again. The NSEASI has recovered from a Life line 20,000 points levels in April to 25,000 points in June 2020.
The beginning of June saw a lot of profit taking off the table but has remained sideways all the way to its 25,000-25,470 as current support/resistant levels. once again, which is a critical level to stay above for a strong short and intermediate bull trend.
TRW TEAM view on the NSEASI:
- Bullish trend of higher highs and Lows still intact
- Current support/resistant levels intact
- Chart formation (A FLAG).
- We expect to see more Bull trend towards the 26,000 plus levels if resistant levels get broken and bearish correction towards 23,100-24,300 points if the support levels get broken.
At this point Market remains range bound and good trading opportunity for swing traders.
Use our SUPPORT/RESISTANT LEVELS for Good Entry/Exit
Some stocks trending within support/resistant levels:
- Buy/Sell N2.60-N2.80