[quote=the deal]The analysis I'm carrying in this article is purely based on technical analysis, i wish i could include the charts with this article but i don't have the rights to publish this charts but i would include links to this charts in this article.
Safaricom- i expect the stock trade lower next week because it's overbought for the first time in six month, on the charts the RSI indicators are at 67.15 while the Stochastic indicators are at 83% indicating an overbought situation, i expect it to re-test Sh3 this week or in the coming weeks. You can check out the Chart here
British American Investment Kenya-is another stock showing overbought levels on the charts, i expect the bounce back rally to evaporate next week, stochastic indicators are at 71% indicating an overbought level. Here is the link to the chart
KCB-The stock is currently grossly oversold with RSI indicators at 20% and stochastic indicators at 11%, i expect the stock to bounce back this week or in the coming weeks to around Sh18.50-Sh19 before trending lower again, the stock is quite bearish on the charts but i believe the current price of Sh17.75 is good entry point for traders and bargain hunters, here is the link to the chart
Kenol Kobil-I expect the stock to trade side ways this week and trade in the range of Sh10-Sh10.50 since the stock is nor on oversold or overbought levels, if one looks at RSI of 45 of stochastic levels of 36%, here is the link to the chart
Mumias Sugar- I expect the recent rally on Mumias Sugar to come to a halt this week or the coming as the stock enters overbought levels, the RSI indicators are at 65% while the stochastic indicators are at 68% indicating an overbought situation, thus i expect the current rally to come to a halt around Sh7. Here is the link to the chart.
Read more here
http://www.contrarianinv...ght-move-next-week.html[/quote]
As expected the Safcon & Britank rallies dissapeared like mist..MSC and KQ traded sideways...Kenol & KCB sunk!!!