Cemex Holdings Philippines, Inc. (CHP) closed on Tuesday at 2.17, up by 4.83 percent. Support is near 1.80 while resistance is near 2.20. The support at 1.80 acts as a precursor to the primary support at 1.60. If the price breaks above 2.20, the next immediate resistance will 2.88.
On the daily chart, CHP is bullish in the short-term but bearish in the long-term. For one, I still see a perfect bearish alignment among the three simple moving averages. This bearish sentiment in the long-term (again, based on the daily chart) can only be reversed once the price enters the 2.55-2.88 range. That spot between 2.50 and 2.55 is the intersection of my three SMAs.
Trade-Volume Distribution Analysis
Most Traded Prices: 2.19, 2.2, 2.18, 2.17, 2.16
Most Voluminous Prices: 2.19, 2.2, 2.17, 2.18, 2.15
CHP closed with an equal value to its volume weighted average price (VWAP) of 2.17. This green candlestick was also matched with a volume that is above CHP’s 10-day volume average. That’s another bullish signal.
Please refer to the price points I mentioned above for the range that got the biggest volume and the highest number of trades.
Although the Net Foreign Buying on Tuesday is a little bit shy to P1 million, at least, the foreign fundies broke the 14-day streak of Net Foreign Selling. Foreign investors are bearish in 2019 YTD so far.
In my previous posts, I talked about my 10SMA-MACD combo. When there’s no liquidity issue, when MACD crosses above the signal line, and when the price closes above the 10SMA, I translate that as a buy-signal. That signal appeared on April 26, 2019.
CHP has a historical volatility score of 65 percent. That’s a moderate risk level for me.
Top 10 Players’ Sentiment
Trading participants of CHP with a 100% Buying and Selling Activity as of Apr-30-2019 at 03:30PM:
- 5 out of 73 participants or 6.85% of all participants registered a 100% BUYING activity
- 35 out of 73 participants or 47.95% of all participants registered a 100% SELLING activity
- Top 10 Players’ Buying Average: 2.1622
- Top 10 Players’ Selling Average: 2.1662
Apparently, almost 50 percent of the trading participants on Tuesday decided to lock-in some profits as the price touched the immediate resistance near 2.20.
Overall Sentiment and Recommendations
I am bullish on CHP based on the data points I’ve mentioned in this post.
I don’t think it’s a bad idea to sell a few tranches near the resistance. If the price will continue to go higher than 2.20 and if the four criteria that I also mentioned in my previous posts are present, you can use the sold price to buy more shares within the most traded and most voluminous range.
If a massive selling will take place at 2.20, at least, you pioneered in selling at a better price.
At the end of the day, it’s not about raking everything down to the last centavo. Gain is gain. Greed causes stress. If you’re stressed in trading, you might end up in a more painful than profitable experience. I’m sure that’s not where you want to be.
As always, please be on top of your trailing stop loss. If the concept of using a trailing stop loss is new to you and you’ve accustomed yourself to using a target selling price, please watch this video.
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I hope this helps. If it does, please let me know which part of my analysis you liked best. Thank you!
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