Update: Comprehensive analysis of Chams for this week (25th - 29th August, 2025)
📊 Market Snapshot
Current Price: ₦2.73 (NGX/TradingView snapshot)
52-Week Range: ₦1.85 – ₦3.65
Trading Activity: The stock doesn’t always trade heavily, but when volume picks up, both everyday traders and bigger investors are usually involved. Always check the latest liquidity before jumping in.
🔎 Technical Analysis (Price Trends)
Short-Term (Daily View):
Price is moving sideways between ₦2.60 and ₦2.90.
A clean push above ₦3.00 could spark a breakout.
Falling below ₦2.40 may lead to a deeper dip.
Medium-Term (Weekly View):
The bigger trend since 2024 is still upward.
But for breakouts to last, trading volume needs to stay strong.
Smart Money Concepts (SMC)
Upside Liquidity (where traders may get stopped out): ₦3.00 – ₦3.65
Downside Liquidity: ₦2.20 – ₦2.40
What to Watch: Strong volume on green (up) days → often a sign that bigger players are buying in.
📈 Chart Patterns
The stock is trading in a rectangle/flag pattern between ₦2.40 – ₦3.00.
Bullish Case: If it breaks above ₦3.00, it could head toward ₦3.50–₦3.70.
Bearish Case: A drop below ₦2.20 may drag it back to ₦1.80–₦2.00.
🌊 Elliott Wave View (Simple)
The 2024–2025 move looks like a recovery wave.
Right now, price is likely in a pause (Wave 4).
A daily close above ₦3.00–₦3.10 with strong volume would confirm a new leg up (Wave 5).
If it falls and stays below ₦2.20, this outlook fails.
Fundamentals (Why It Matters)
2024 Results: Revenue ≈ ₦14.8bn, Net Profit ≈ ₦0.41bn → CHAMS is back in profit.
Balance Sheet (Q2 2025): Assets ≈ ₦20.7bn; Liabilities ≈ ₦10.2bn → moderate debt, not overleveraged.
Profitability Trend: Earnings for 2025 so far remain positive.
Bottom line: CHAMS is no longer a “loss-making gamble” — it’s shaping up as a recovery and growth stock.
Trading Strategy (Long-Only on NGX)
Since short selling isn’t practical in Nigeria, here’s a buy-only approach:
Core Swing Plan (Safer Approach)
Entry (buy zone): ₦2.45 – ₦2.65 (buy dips at support)
Add on strength: Daily close above ₦3.00 with good volume
Stop-loss: ₦2.15
Targets:
TP1: ₦3.30 – ₦3.50
TP2: ₦3.60 – ₦3.80
TP3: ₦4.20 – ₦4.50 (if strong news/contracts land)
Aggressive Play (Higher Risk)
Entry: ₦2.80 – ₦2.95 (buy into momentum)
Stop: ₦2.40
Quick Target: ₦3.30 – ₦3.60
Position Management
Take some profit at TP1
Move stop-loss to entry once TP1 is hit
Trail the rest as price makes higher lows
Conclusion & Checklist
Bias: Neutral-to-bullish as long as ₦2.15–₦2.40 holds.
Breakout Trigger: Daily close above ₦3.00 with strong volume.
Upside Potential: ₦3.60–₦3.80 short-term; ₦4.20+ if contracts/earnings surprise positively.
Downside Risk: A sustained drop below ₦2.15 kills the bullish setup.
Final Take:
CHAMS Plc is no longer just a struggling tech stock. With its return to profitability and improving fundamentals, it’s becoming a credible recovery story. Traders can play the chart setup (buy dips near ₦2.5 or a breakout above ₦3.0), while longer-term investors may see CHAMS as a potential growth compounder — if management continues to execute well on contracts and expansion.
