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NFTRH+; An African Country w/ a Constructive Chart

An email from a subscriber asking for my view on the chart of the Global X Nigeria ETF (NGE) is the basis of this post. We had highlighted NGE sometime last year (at another subscriber’s request) before it started to rise. Unfortunately, I took my eye off the ball. This is a low priority update to note the constructive charts of NGE, for anyone who might be interested.

My late friend Jonathan Auerbach of Auerbach/Grayson, an emerging markets specialist, was high on Africa and most of all, Nigeria. He passed away several years ago but I remember his enthusiasm.

NGE only averages 27,000 shares traded a day and is probably a specialty play due to its Frontier Market status. In other words, it’s for patient investors, not traders.

The daily chart shows a peak with many other markets in January. Why people hysterically had to own Nigeria in early January I don’t know, but that was unsustainable and NGE has had a good and significant pullback and consolidation to erase that excess. SMAs 50 & 200 are in up trends, MACD and RSI are constructive and ADX shows the excessive momentum completely fixed.

Short-term support and resistance are noted and of course you can’t rule out a drop to the up-sloped SMA 200. But for a nice looking chart I’d rather see the green support area hold.

nge

The weekly chart shows that if you are a Nigeria bull for fundamental reasons and are a ‘big picture’ investor looking for a portfolio piece, Nigeria has come a long way down but not gone a long way back up. A couple of weekly exponential moving averages have crossed back up and support the price. MACD looks a little funky to me, but RSI is 50+ and the trend is up.

nge

Just an FYI update for anyone interested.

A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the buy, sell, stop parameters are already noted. They are meant as a starting point for your further research if interested. I will not personally buy every item highlighted and will sometimes sell (ref. Trade Log) any item that I do buy below target (assuming I’ve not stopped out or sold for some other reason), which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.