BREAKOUT?

Market witnessed a BULLISH rally up by 408.16 points as it broke past a resistant line of 27,183.59 to close at 27,503.36.

• Value of deals traded was N8.539 billion. Market Cap. N6.652 trillion

• Banking Sector led the Top 5 trades, while NSE FBT & NSE OIL & GAS led Top Losers

• NET BID: Skyebank 80.3m, Japauloil 41.7m, IBTC 19.4m, AIICO 10m

• NET OFFER:   Resortal 128m, Equity Assurance 63m, Universal Ins 44m

Market activities was Bullish all day, but did show some signs of Panic Selling in Dangflour, Firstbank and UBA.

TECHNICAL VIEW

A Breakout above a 50% Fibonacci level of 27,183.59 indicates market is still in a bullish trend

• RSI reading of 61.27 points has put the index in a comfortable trading channel

• NSE 30 1,125.12 approaching a resistant line of 1,139.20 points

• NSE BANKING, FBT, OIL & GAS and INSURANCE chart are likely to form a DOUBLE TOP PATTERN, rest or do a minor pullback within this levels

• Weekly/Monthly charts are still looking healthy as MACD INDICATORS are in a Bullish crossovers

• Short -Term Traders: Take Profit on resistant levels

• Medium/Long term traders: Go LONG.

My technical outlook for the market are:

• I foresee a scenario where market will likely test 28,000 points (INVERTED HEAD & SHOULDER PATTERN)

• Pullback to 27,183 -28,000 range and finally Breaking out of its 28,000 range to 29,000-30,00o points

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