MRC Technical Analysis: Top Up or Stop It?

MRC Allied, Inc. (MRC) Technical Analysis

MRC Allied (MRC) has been trading below its 10-day simple moving average (SMA) for six consecutive trading days already. Also, it’s been trading between its immediate support at ₱0.35 and immediate resistance at ₱0.46 for 44 consecutive trading days.

MRC has stayed in the downtrend channel since it hit its highest price this 2021 last January 20, 2021. Even if MRC got a low erraticity level due to its 10-day historical volatility score of nearly 40 percent, this situation proves that a low- to moderate-erraticity level is not a signal to buy the stock automatically. I use the historical volatility score to know how erratic the price action is without even looking at the candlestick’s chart.

MRC closed today at ₱0.405, down by 1.22 percent, with a total turnover value of only ₱6.4 million. Don’t expect any help from the foreign investors because their participation is historically low on MRC.

Would you like to know if I see a confirmed buy signal for MRC?

When looking for a confirmed buy signal, let’s check if the six parameters of my Evergreen Strategy 2.0 are all bullish.

Firstly, MRC is still trading below its 10SMA, like I already mentioned. That’s bearish.

Secondly, its Moving Average Convergence Divergence (MACD) already registered a death cross below the signal line yesterday, May 10, 2021. So that’s bearish, too.

Thirdly, the last price of ₱0.405 is lower than its volume-weighted average price (VWAP) of ₱0.4113. So that’s a bearish rating again.

Fourthly, the last volume bar is lower than 50 percent of MRC’s 10-day volume average. So, again, that’s a bearish rating.

Fifthly, the Dominant Range Index (DRI) of DITO is neutral. That doesn’t help at all to get a confirmed buy signal.

Sixthly, the Market Sentiment Index (MSI) is bullish.

So, do you think there’s a confirmed buy signal for MRC?

Dominant Range Index

Dominant Range Index: Neutral
Last Price: ₱0.405
Intraday Low: ₱0.4000
Intraday High: ₱0.4250
VWAP: ₱0.4113
Dominant Range: ₱0.405 – ₱0.42

Market Sentiment Index

Market Sentiment Index: BULLISH
16 of the 25 participating brokers, or 64.00% of all participants, registered a positive Net Amount
14 of the 25 participating brokers, or 56.00% of all participants, registered a higher Buying Average than Selling Average
25 Participating Brokers’ Buying Average: ₱0.41149
25 Participating Brokers’ Selling Average: ₱0.41082
8 out of 25 participants, or 32.00% of all participants, registered a 100% BUYING activity
5 out of 25 participants, or 20.00% of all participants, registered a 100% SELLING activity

Synthesis

There’s no confirmed buy signal for MRC because not all of its six parameters are bullish. The bullish Market Sentiment Index can’t save them all.

So, what should you do if you already have MRC in your portfolio? First off, ask yourself if your trailing stop is still intact. If you don’t know what a trailing stop is, it’s more likely that you don’t have an exit plan. That’s not a desirable situation. But, assuming your trailing stop is still intact, you have two options. It’s either you reduce the percentage of risk on your trailing stop or hold your position. You can use our trailing stop calculator. You’ll find it in our stock market library. Also, it’s imperative that you review the course manual that I wrote for the Evergreen Strategy in Trading and Investing in the Philippine Stock Market 2.0. It’s in your account (if you’re one of our clients/subscribers).

Now, what should you do if you don’t have MRC yet? Should you buy it now thinking that you’re buying more for less? Hold your horse. I don’t call this buying-more-for-less but a waste of buying power. I would rather wait for a confirmed buy signal to have a stress-free experience in stock trading and investing. If you’re one of our clients, I advise that you request MRC’s latest Dominant Range Index and Market Sentiment Index in our online discussion board on our website so you can synthesize on your own, just like how I wrote this analysis.

If you read, studied, and understood the course manual of my Evergreen Strategy 2.0, I don’t see a reason why you still can’t synthesize as I do. If there’s anything that isn’t quite clear to you about the Evergreen Strategy 2.0, there’s a section in our online discussion board where you can post your question.

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Jaycee De Guzman

Founder and CEO at Equilyst Analytics

Experience the expertise of Jaycee De Guzman, the brain of Equilyst Analytics, renowned for his unique data analysis. He is a computer scientist and a self-taught digital marketing strategist and agriculturist. Since Equilyst Analytics’ founding in 2012, over 10,000 local and foreign clients have consulted with Jaycee de Guzman on crypto and stock investments.

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