For over 20 years, Nigerian cocoa processing company had been unable to provide reliable shareholder retruns. Even the stocks noteworthy rallies to over ₦3 a share in 2023 was soon followed by a decline back to its ₦1.4 mark. The last such drop in 2024 gave way to another surge to nearly ₦2.06 by Q1 2025.
Alas, the bulls couldn’t maintain momentum and the share price has been hovering between ₦1.5 and ₦2.
The Elliot wave chart of FTNCOCOA says a different story however, The daily chart of FTNCOCOA shows that the rally to ₦3.5 is impulsive in nature however this is not subdivided appropriately, hence this must be a C of an A-B-C pattern. The current near -50% sump should then be a wave X or B wave. An X wave can be subdivided into A-B-C-D-E where e waves are sometimes not guaranteed.
Upside target near ₦5.5 makes sense which means that FTNCOCOA stock can roughly double from its current level. Once the bulls reach the new high, however, then a three-wave correction should then take place.
