Access Bank hit a top @ N8.20 dd. 27/9/2019 and since then has been in a corrective trend thereby developing an expanded flat pattern which seems to be attempting to break above the recent top.
Caution!….it’s trader navigator indicator remains in a ‘sell’ signal…thus it may be more reasonable to wait for Access to break over N8.20 before taking any investment action(s). For this reason, our preferred expectation is for Access to continue it’s initial bearish trend since Oct-2019 towards a support level @ N6.65
In the coming trading days, we recommend ”buy the dip” on Access Bank Plc.
Access Bank may have hit a top @ N10.50 and with it’s fair price around N8.49, it looks overbought. The stock seems to have formed an ending diagonal pattern with a massive bullish thrust-out but take note that it’s Traders Navigator indicator still remains in a ”sell” mode notwithstanding the massive surge in price from N7.07 to N10.50 in the last 3 weeks.
Thus, what could make Access fall again to N5.00 support level? Maybe it is time for the new “Access/Diamond” management to execute its N75bln capital increase thus creating the potential ”price dilution” event.
In the coming trading days, we recommend ”bearish caution’‘ on Access Bank Plc.
Access Bank topped recently @ N12.00 and has entered into a corrective (bearish) trend where it touched perfectly the lower limit of our long-term bullish trend channel. The question is – can it break below this limit?
May be ‘YES’ as a bearish hook is forming on the weekly MACD. This may be the initial sell-off confirmation….if you add the early Jan-2020’s Access shares sell-off by Mr. Wigwe (CEO/M.D of Access Bank Plc) then it seems technicals are confirming the insider trading activities in Access.
Notwithstanding, if the correction is firm – we estimate that our target support range will be between N7.00 – N9.00 thus maybe it is time for the new “Access/Diamond” entity to execute its N75bln capital increase thus ensuring the long expected ”price dilution” event.