Nickel Asia Corporation (NIKL) continued to show some struggles in piercing the resistance near ₱3.45. NIKL dove today, September 3, 2020, by 0.91 percent at ₱3.27 per share. This mining company printed a total turnover value worth ₱29.40 million.
Foreign investors registered a net foreign buying worth ₱5.50 million. However, there’s not much to attribute to the foreign investors since they only have relatively small participation in the day-to-day trading of NIKL shares.
NIKL maintains its high-risk level rating due to its historical volatility score of 75 percent. Note that I’m referring to the erraticity of the 10-day price action and not your personal risk tolerance when I said “risk level”.
Notice that NIKL already broke below the 10-day SMA. Also, the MACD line registers a growing bearish divergence with the signal line.
On the other hand, the two DMI lines (+DMI and -DMI) gives an opposing view. It’s a bullish signal when the +DMI hovers the -DMI, especially when the ADX score is higher than 25 points. This phenomenon is not rocket science. You cannot expect any stock’s DMI to show a bearish stance very quickly if it has been moving above the 10-day SMA for more or less two months.
NIKL’s immediate support is near ₱2.88, while its immediate resistance is near ₱3.45. If you don’t know yet how to identify support and resistance levels using horizontal lines or Fibonacci, you may use my formula-based support and resistance level calculator. You’ll find it in the TOOLS tab of our online stock market library.
Trade-Volume Distribution Analysis
Last Price: ₱3.27
Dominant Range: ₱3.26 – ₱3.30
At Equilyst Analytics, we say the stock has a confirmed buy signal if its 10SMACD and Momentum Power Indicator are bullish. Our 10SMACD has two elements, while our Momentum Power Indicator has four. These elements were discussed in detail in the online stock market course included in our stock market consultancy service, which is available both in Tagalog and English.
Now, what’s the 10SMACD and Momentum Power Indicator statuses of NIKL?
NIKL’s 10SMACD and Momentum Power Indicator are both bearish. There’s no confirmed buy signal for NIKL as far as the price action on September 3, 2020.
For one, the last price of ₱3.27 is lower than the volume-weighted average price of ₱3.28. Moreover, the dominant range between ₱3.26 and ₱3.30 is closer to the intraday low than the intraday high. I’m not going to discuss every single detail that made its 10SMACD and Momentum Power Indicator bearish. If you’re one of our clients, you should already know what made both indicators bearish.
True Market Sentiment EOD – September 3, 2020
True Market Sentiment: NEUTRAL
5 of the top 10 brokers registered a positive Net Amount
7 of the top 10 brokers registered a higher Buying Average than Selling Average
Top 10 Players’ Buying Average: ₱3.2815
Top 10 Players’ Selling Average: ₱3.2833
15 out of 36 participants or 41.67% of all participants registered a 100% BUYING activity
7 out of 36 participants or 19.44% of all participants registered a 100% SELLING activity
There’s a chance for NIKL to register a green candlestick by the next trading day due because nearly 42 percent of today’s trading participants registered a 100 percent buying activity. However, this forecast has a downside bias due to the bearish status of the 10SMACD and Momentum Power Indicator. Don’t keep your hopes up too high.
True Market Sentiment MTD – August 3, 2020 to September 3, 2020
True Market Sentiment: BEARISH
5 of the top 10 brokers registered a positive Net Amount
4 of the top 10 brokers registered a higher Buying Average than Selling Average
Top 10 Players’ Buying Average: ₱3.0303
Top 10 Players’ Selling Average: ₱3.0314
11 out of 103 participants or 10.68% of all participants registered a 100% BUYING activity
11 out of 103 participants or 10.68% of all participants registered a 100% SELLING activity
This bearish month-to-date True Market Sentiment is what can kill the hope I mentioned above. This is another reason why NIKL’s price might move in a topsy-turvy manner, not to mention that we only have one trading day left for this week. Profit-taking is the usual and historical mantra every Friday.
Hold your position if your trailing stop is intact and if you’re a high-risk trader or investor. Do not average down. Do not buy more shares yet.
On the other hand, holding your position may not be enough if you’re a low-risk trader or investor. Consider reducing the percentage of risk on your trailing stop.
You can use my trailing stop calculator, which you’ll find in our online stock market library’s TOOLS tab.
Meanwhile, do not do a test-buy yet if you don’t have NIKL in your portfolio. It’s fair to add this to your watchlist so you can monitor its price action. Entertain the idea of doing a test-buy once its 10SMACD and Momentum Power Indicator are both bullish. Once both indicators turn bullish, calculate your reward-to-risk ratio. That’s an extra process you need to go through if you’re yet to enter a stock position. My reward-to-risk ratio calculator is available in the TOOLS tab of our online stock market library, too. If you’re satisfied with the calculated ratio, that’s when you do a test-buy within the dominant range.
You can post your request for our latest Trade-Volume Distribution Analysis, True Market Sentiment, and data-driven recommendations for NIKL (or any other PSE-listed stock) in our Private Clients Forum if you’re one of our clients.
Do You Want to Learn How to Analyze This Way?
You may already know SMAs, MACD, DMI, VWAP, support, and resistance, but maybe you’re wondering what 10SMACD, Momentum Power Indicator, and True Market Sentiment are. You’ll learn my entire methodology through the online stock market course of Equilyst Analytics. Access to the online stock market course is just one of the six services you’ll get when you subscribe to our stock market consultancy service. Read the details of our stock market consultancy service so you’ll know how I can make you learn how to invest independently and trade tactically.
You will find tutorials about SMA, MACD, DMI, VWAP, support, and resistance on Google or YouTube, but you will never find the methodology of how I mix and match them. My service is not about giving you a lecture about the definition of these indicators. My service is about teaching you my methods on HOW to use these indicators, WHEN to use them, WHY use them, and more.
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