PXP Energy Corporation (PXP) Analysis: More Likely to Break Below ₱9.30 Than Above ₱11.30?

PXP Energy Corporation (PXP) Analysis

PXP Energy Corporation (PXP) registered a ceiling price (50 percent up) last Monday, but it failed to sustain that ascent, as it closed at ₱10.28 per share, down by 11.23 percent, on October 20, 2020. The total turnover value was at ₱360.70 million.

PXP Energy Corporation is not so much of a foreign investors’ favorite since they registered a relatively measly net foreign selling worth ₱3.10 million and ₱0.87 million on Monday and Tuesday, respectively. Foreign investors are net sellers on PXP, year-to-date.

The acting immediate support of PXP is near ₱9.30, while the immediate resistance is near ₱11.30. If it breaks below ₱9.30, PXP Energy Corporation will register a lower-low support near ₱7.10.

Be careful with your next move because the tall, red volume bar on October 20 engulfed all daily volume bars of 2020. In other words, Tuesday’s traders were seriously decided to lock-in profits.

It’s not enough to see that the last price is still moving above the 10-day simple moving average of PXP. We got to check the other indicators, such as the Momentum Power Indicator of this mining stock.

Moreover, PXP is already an extremely high-risk stock due to its 10-day historical volatility score of 330 percent. When the 10-day historical volatility is this high, gaps are visible on the stock’s daily chart. If you’re a new trader or investor, you don’t want to touch stocks that erratically move up and down because you don’t have the needed speed in monitoring the stocks yet. I recommend stocks with a 10-day historical volatility score of 1 to 50 percent to new traders or investors.

I will not cite the classical bullish position of the moving average convergence divergence (MACD) and the directional movement index (DMI). The bullishness of these two indicators is an artificial effect of the erratic or unnatural ascent in price.

PXP Energy Corporation: Trade-Volume Distribution

Last Price: ₱10.28
VWAP: ₱10.53
Dominant Range: ₱10.20 – ₱10.30

I give PXP Energy Corporation a bearish Momentum Power Indicator because all of its four elements are bearish. For one, the last price is lower than the volume-weighted average price (VWAP). Also, the dominant range is closer to the intraday low than the intraday high. This event means PXP Energy Corporation might struggle to regain its previous position in a similar abrupt manner.

PXP Energy Corporation: True Market Sentiment – EOD (October 20, 2020)

True Market Sentiment: NEUTRAL
5 of the top 10 brokers registered a positive Net Amount
5 of the top 10 brokers registered a higher Buying Average than Selling Average
Top 10 Players’ Buying Average: ₱10.5260
Top 10 Players’ Selling Average: ₱10.5358
8 out of 87 participants, or 9.20% of all participants, registered a 100% BUYING activity
14 out of 87 participants, or 16.09% of all participants, registered a 100% SELLING activity

PXP Energy Corporation: True Market Sentiment – WTD (October 19-20, 2020)

True Market Sentiment: NEUTRAL
5 of the top 10 brokers registered a positive Net Amount
6 of the top 10 brokers registered a higher Buying Average than Selling Average
Top 10 Players’ Buying Average: ₱10.7694
Top 10 Players’ Selling Average: ₱10.7167
8 out of 88 participants, or 9.09% of all participants, registered a 100% BUYING activity
12 out of 88 participants, or 13.64% of all participants, registered a 100% SELLING activity

PXP Energy Corporation: True Market Sentiment – MTD (October 1-20, 2020)

True Market Sentiment: NEUTRAL
7 of the top 10 brokers registered a positive Net Amount
3 of the top 10 brokers registered a higher Buying Average than Selling Average
Top 10 Players’ Buying Average: ₱8.9545
Top 10 Players’ Selling Average: ₱9.2555
5 out of 93 participants, or 5.38% of all participants, registered a 100% BUYING activity
12 out of 93 participants or 12.90% of all participants registered a 100% SELLING activity

The neutral True Market Sentiment across three timeframes plants the seed of uncertainty in the minds of traders and investors. It’s all the more that you should be more prudent, if not conservative, with your decision, especially if you’re yet to enter a new position on PXP Energy Corporation. Wealth Securities is the broker (among the top 10 players) that pushes the price higher.

PXP Energy Corporation: Recommendations

My first recommendation is for you if you already have PXP Energy Corporation in your portfolio. This condition is also under the assumption that you are using a trailing stop, and it is still intact.

Hold your position if you’re a moderate- to high-risk trader or investor. Reduce the percentage of risk on your trailing stop or lock-in some profits if you’re a low-risk trader or investor. Whichever you are in these two settings, do not add more shares yet because there’s no confirmed buy signal, as far as Equilyst Analytics’ methodology is concerned. Re-check the status of PXP Energy Corporation once both 10SMACD and Momentum Power Indicator are bullish.

My second recommendation is for you if you do not have PXP Energy Corporation yet in your portfolio.

Stay in a wait-and-see mode until both of its 10SMACD and Momentum Power Indicator become bullish. Are you one of our clients? Then, you may ask for our latest analysis in our Private Clients Forum. We will tell you if we already see a confirmed buy signal and where it is most logical to do a test-buy.

Remember, once both 10SMACD and Momentum Power Indicator become bullish, you must calculate your reward-to-risk ratio. Do not buy right away. Calculating your reward-to-risk ratio will always be that extra process you must do if you’re about to enter a new position in any stock. We have the reward-to-risk ratio calculator, trailing stop calculator, and more stock trading calculators in the TOOLS tab of our online stock market library. Use them for free.

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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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