The alignment of the simple moving averages (10-, 50-, and 200-day SMAs) of Bloomberry Resorts Corporation (BLOOM) are in a perfect alignment but the position of the latest candlestick is not where those who have BLOOM want to see it.
If you have BLOOM already, you prefer to see the price moving above the 10SMA, preferably with a volume above 50 percent of its 10-day volume average. Speaking of volume, BLOOM has never registered a daily volume bar above its 10-day volume average for the past 10 trading days.
Meanwhile, it shows that this stock is giving some respect to the support level near 11.00, which is very close to the tip of the 50-day SMA. But if this relatively flimsy volume continues, these BLOOM holders might get tired of holding their position. If that happens, continue monitoring if the price will bounce away from 10.20. This 10.20 is the precursor to 9.40.
Foreign investors are in a Net Foreign Selling stance on BLOOM year-to-date. In the first half of trading today, foreign fundies have already registered a Net Foreign Selling worth P14.2 million.
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Going back to my analysis of BLOOM, the major resistance is near 13.00-apiece, the precursor to the next resistance at 14.80.
MACD is increasing the distance between itself and the signal line. Unfortunately, the gap is at the bottom of the signal line and not above it. That’s not the kind of distance you would want to see if you’d like to position on BLOOM. What you want to see is the MACD crossing above the signal line with the price moving above the 10SMA.
BLOOM maintains its low-risk level with its historical volatility score of 54 percent on the daily chart.
Take note: Not because the stock has a low risk level, don’t take that as an automatic buy signal.
Most Traded Prices: 11.4, 11.42, 11.44, 11.38, 11.46
Most Voluminous Prices: 11.4, 11.42, 11.38, 11.44, 11.46
Watch out for 11.40 and 11.42.
Top 10 Players Analysis
Trading participants of BLOOM with a 100% Buying and Selling Activity as of Mar-05-2019 at 12:00PM:
3 out of 34 participants or 8.82% of all participants registered a 100% BUYING activity
12 out of 34 participants or 35.29% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 11.4270
Top 10 Players’ Selling Average: 11.4300
More than one-third of today’s participants decided to do nothing but sell their BLOOM. Two of the 34 100% sellers made it to the top 10 players’ list.
My Overall Sentiment and Recommendations
Even though the buying average of the top 10 players is above the average of the intraday high and intraday low, my overall sentiment is neutral to bullish on BLOOM. I am not completely bullish on BLOOM yet since it is now closer to the support than the resistance. If you are basing your reward-to-risk ratio on the support and resistance of a stock, you know that your potential risk is higher than your potential reward.
If you bought BLOOM below 11.00 per share, just follow your trailing stop loss. Sell once your trailing stop loss is hit.
What price should you use as a basis when calculating your trailing stop loss?
If your average cost is higher than the current price of the stock, calculate your trailing stop loss from your average cost.
If your average cost is lower than the current price, calculate from the current price.
What if you don’t have BLOOM yet and you’re just wondering whether you should trade the name or not? What should you do? Wait near support. However, if the price doesn’t kiss the support level and it starts to move the northward direction WITH VOLUME, you have the option to do a test-buy. Make sure you know where your trailing stop loss is if you will do a test-buy.
The bottom line is you have to manage your risk while you’re hoping that your forecast is right.
If you are my client, please post a request for my latest price and volume analysis of this stock in our Private Clients Forum tomorrow morning.
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