TARGET TECHNICAL REVIEW FOR THE WEEK ENDED 8TH FEBRUARY 2013- NO.

0005/2013

The bull run continued for the week. Have you observed how all the insurance companies were rising from their lowest prices recently? This further confirms that sector rotation is an important factor in stock investing and this is an area where technical analysis comes into play. Sector rotation is just like what happens to human beings in terms of what is fashionable at a particular point in time. For the past few weeks I will name 2 sectors which were really booming. Knowing which sector is currently leading the market makes you as an investor to have rest of mind during the topsy-turvy movement of the market. For example, when I bought Fidson at a temporary peak price sometimes ago, and the price suddenly started dropping rapidly (only the stop loss/strong support level kept me in the trade), the fact that other stocks in the same industry were not falling below their support levels made me not to panic. Two examples (to get more of this and the specific stocks you can e-mail me kelanio2002@yahoo.com) of the reigning sectors for the past 2 weeks are: Insurance Flour Millers

If you are in any of these sectors you may not need to panic, let your stop loss/support level handle the risk.

Follow-up On Selected Stocks Please note that on or before 31 March 2013, we will liquidate this portfolio and determine our quarterly profit.

1.

(Portfolio 1 Initial Capital NGN475,000)

UBA/Unity Capital Last week our portfolio was worth NGN651,396. This week the value is 785,000. Looking at the rotation I talk about above, I will like to sell 25,000units of UBA on Monday and move to Mansard on Wednesday. Computation of portfolio value: Profit /Loss on Portfolio Investment Capital Market Value of Investment475,000

UBA (7.45 per unit - 50,000 shares) Unity Bank (0.91units 450,000 shares) Total Market Value of Investment

372,500 409,500 782,000

Profit on Portfolio Profit earned is 65%

307,000

____________________________________________________________________ 2. Portfolio 2 - Float NGN100,000

2 selected stocks were Honeywell and Fidson. Entry date is 18 January 2013. Honeywell Flour Mills Entry Price/Date- NGN2.25- /14 Jan 2013 Target (1st)- NGN4.00 Stop Loss- 2.25 QTY Bought- 26,600 Current Price- 3.34 Amount Invested- NGN60,000 Current Value- NGN 88,844 Profit Update FIDSON Entry Price/Date- NGN1.17- /14 Jan 2013 Target (1st)- NGN3.00 Stop Loss- 0.94 QTY Bought- 34,100 Amount Invested- NGN40,000 Current Price- 1.64 Profit Update NGN15,924 20,181 of 44% in less than 1month NGN28,844

Total Profit on 2nd Portfolio (28,844+15,924)STOCK SELECTION FOR THE WEEK

For this week in terms of very promising stocks, the following are showing very good potentials. The list for last week is still okay, if any of the shares are retracing (like CCNN, just look for the support level). For this week you can add any new one from these to last weeks list.

STOCK SELECTED/REASON Honeywell- Good earnings expected AfriPrud- Strong momentum PZ- Strong momentum Fidson Good earnings expected Mansard- Good Earning Expectation

SUPPORT 1.79

RESISTANCE 3.56/4.40

1.52 31.50 1.00

2.52 44.10 3.00

1.70

3.36

The strengths of these stocks are fantastic and likelihood of advancing is high. _____________________________________________________________________ Chart Review for the Week- Mansard and Fidson _______________________________________________________________________ Mansard Price about to enter wave 3 for the explosive movement

Fidson- Price about to enter wave 3 for the explosive movement

Writer: Yusuf Kelani ACA. Final Securities Trading Certification from Ghana Stock Exchange. I am available to join a stock brokerage as Technical Analyst (on part time or full time basis). There is a better version of this newsletter available (this is the subscription version). At a very reasonable fee, you can have my full fortnightly analysis. I am sure the gains from the newsletter can more than pay for the cost over 100times. For rate for the newsletter, you can contact me. It starts from NGN2,000 per month and the yearly subscription is NGN20,000 per annum. The newsletter will be sent to you forthrightly. To gauge the performance you can follow my postings on scribd and other blogs. Just google Technical analysis of Nigeria Stock market. Explanation of Terms:

Support: Price at which on can start thinking of buying. This is like saying get set to buy. It is a forecast buying Zone. Resistance: Price at which you should think of selling/taking some profit or exercise caution in buying at this price.

Caution: Investing is a risky venture. This is just my opinion and I cannot be liable for any loss suffered as a result of following this recommendation. Contact: +233247429534,+2348023054935, E-Mail- kelanio2002@yahoo.com

See some of my Videos on stock Investmenthttp://www.youtube.com/user/newyorktraders/feed?filter=2 Get text of my newsletters http://www.scribd.com/doc/111223033/NSE-Review-Week-Ended-2Nov-2012