There appears to be signs of early sell off of the stock price of movement of GTB; judging from my observation. The stock declined today (January 30, 2007) on volume of 13.3 million, which is almost twice its Friday (January 26, 2007) trading volume. This is not an encouraging sign.
During the trading day, the stock attained a high of N23.78 and a low of N21.66, but closed at N21.78 which is almost at the low of the day. Viewing the stock price trend from the “Japanese Candlestick” formation, this an ominous sign. The stock has had 4 days of consecutive downward movement. It has violated its 10 day SMA (N21.88), but it is still above the 20 day SMA (N20.57).
It is amazing that GTB is experiencing a downtrend inspite of the vote of confidence given to the bank by the international financial community last week. The bank’s five-year Euro-Bond offer in the international financial market was over subscribed by more than $200 million.
I usually do not doubt my chart trends. Based on the recent news, this stock should be moving higher not downward. Perhaps there is information about the organization that is not available to the average investor. This is basically why I watch the charts because it provides evidence of foot prints of institutional investors. I am not advocating that the stock is a sell at the current price. However, it is pertinent that you watch the trends to make intelligent decisions about your investment.
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