Zeus Holdings (ZHI) was moving sideways since the latter part of 2017. It started to register a significant distance above the 10-day simple moving average last February 1, 2019. Please don’t ask me for the catalyst for its awakening. When I wear my technical analyst’s hat, news and speculations are already factored in to the price of the stock. That was the same day when the price move above the 10SMA and the MACD registered a golden cross with the signal line (meaning the MACD line crossed above the signal line).
When you look at the Net Foreign chart, the two most recent bars look so towering. But if you’ll check the cumulative value of the Net Foreign Buying on those two days, it is only a measly amount of more or less P4.6 million. In this case, I don’t need to monitor the foreign investors’ sentiment on ZHI.
I know what you’d like to ask me.
Is it okay to buy ZHI tomorrow?
After all, there’s volume. The price is still, of course, moving above the 10SMA.
Well, you need to dig deeper if you’d like to have a more substantial basis on whether the reward-to-risk ratio is in your favor or not if you are just about to enter a new position on ZHI.
Are you familiar with Fibonacci? Is it one of the indicators you frequently use? What are your observations using it?
Let me tell you what I’ve observed.
Sometimes, reversals happen when the price hits either the 50 percent or 61.8 percent Fibonacci retracement.
What do I mean here?
If you’re relatively new to active trading and you’re not that confident yet in what you do on your own, I suggest that you wait for the stock to re-enter the 0.31-0.34 zone. That’s the range of the two Fibonacci retracements I mentioned above.
If you’re a high-risk trader and you really want to ride this name tomorrow, make sure you are quick to execute your trailing stop loss once it’s hit. It’s Friday tomorrow. You know what usually happens on a Friday, don’t you? Classical belief says that most profit-taking activities happen on a Friday.
Anyway, I’ll tell you what I know about ZHI’s price and volume distribution and its top 10 players’ sentiment below.
Whether you already have ZHI in your portfolio or you’re only in the planning stage to play this stock, I advise that you pay extra attention to the 0.37-0.385 range tomorrow. The stock might play actively again within that range tomorrow. The operative word is might. So watch your chart. If you are one of our customers, I advise that you log into your account and post a request for this stock’s latest Price-Volume Distribution chart in our forum. It’s either me or one of my team members will get back to you with the stock’s chart and its statistics like the ones you see below.
I’ve written hundreds of articles on this website where I repeatedly explained why I love doing the price-volume analysis. Please read some articles on this website.
Most Traded Prices: 0.38, 0.39, 0.37, 0.385, 0.375
Most Voluminous Prices: 0.38, 0.39, 0.37, 0.375, 0.385
Top 10 Players
Trading participants of ZHI with a 100% Buying and Selling Activity as of Feb-07-2019 at 03:30PM:
9 out of 58 participants or 15.52% of all participants registered a 100% BUYING activity
13 out of 58 participants or 22.41% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 0.3772
Top 10 Players’ Selling Average: 0.3773
By the looks of the top 10 players’ buying and selling averages, it seems that 0.375 is the sweet spot.
There seems to be a confluence with the VWAP, the prices that got the biggest volume and the highest number of trades and the top 10 players’ buying and selling averages.
Do you now see why I always refer to my Price-Volume Distribution and Top 10 Players charts every time I do my technical analysis?
Today’s top 10 players aren’t overly bullish on ZHI. If they were, you would see think green bars. But as we all can see on my chart below, the little red bars seem to be thicker than the little green bars. If you were to ask me, I’d say that I see a tug-of-war between the bears and bulls today. Traders were eaves-dropping on each other’s next move. The majority of traders is asking, “Is there a strong demand to buy above 0.40?” They didn’t see that much demand that’s why none of today’s top 10 players (of ZHI) registered a towering green or red bar.
Just post your question below. I’d like to inform you in advance that my detailed responses are only found in the Private Clients Forum where EquiPicks subscribers are the ones who have an access to. You can subscribe here.
Of course, I would appreciate it if you can also comment below if you find this post helpful and useful in your trades.
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