Assumption/Facts:
- Analysis is purely technical.
- Analysis is not always 100% correct, apply money management.
- We are strictly interested in price action because it is the most reliable.
- Recommendation(s) is for short term (days to weeks) trading only, except otherwise stated.
Background:
According to information available, the peak price for FIRSTINLAND this year is around 13.2 naira and that was in early March, and since then it has depreciated to 5.98 naira as of writing (loss of 7.22 naira).
Analysis:
Our analysis is based on the attached daily price charts of FIRSTINLAND for this year, we can clearly see that the stock is in a down-trend (substantiated by the fall in price).What we are trying to look for is a buy entry point, if we draw a downward trend line: from late April to late August, also from late August to early November. Another upward trend line from mid march across late April, and we note where the prices bounced off, we will be able to determine our likely buy entry point.
Looking at the upper red trend line, price broke it on the fourth attempt@ around 5.5 naira and after breaking it formed a bearish candle, price retraced by 50% before moving back up, the break is an ideal break-retrace-continue, presently the price is around the first breakout, impatient trading will be to enter at the break of the upper trend line (red).Attached below is the graph.
RECOMMENDATIONS:
-With reference to where you have missed entry point on the graph, you can buy at the present price (around 5 naira), and looking at price reaching around 6.5 naira (the upper black trend line) and see how price action will play out there, the other alternative is to buy at the high of the breakout candle (marked X on the graph: around 6.2 naira).
- Any question/suggestion please send a mail to lordgbengs@gmail.com
Disclaimer: Use of recommendations cited on this blog is at personal monetary risk, the owner of the blog does not accept loss as a result to the use of this information.
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