Welcome to the 13th episode of our EquiTalks program.
If you have missed the previous episodes, I encourage you to visit our website at www.equilyst.com and head on to the Learn menu. Click on EquiTalks Video, EquiTalks Audio, and EquiTalks Note.
For today, I’d like to talk about Socresources, Inc. (SOC). A lot of you are interested to know what made SOC rise by almost 50% today.
It has a day change of 49.33% as of March 25, 2019, Monday.
The stock closed today (March 25, 2019) at 1.12. It broke above the resistance of 1.11 by one fluctuation.
Support is at 0.71. Normally, I don’t check the disclosures or news that may have acted as the catalyst for the movement of the price of the stock. For those of you who are intrigued what drove SOC to rise by nearly 50%, let me give you a tour on the disclosures for this company.
On edge.pse.com.ph, let’s take a look at this clarification of news reports. The title of this is “Puyat-Reyes group expects sales of P8b from 3 projects.”
This report is the catalyst that drove SOC to hit a ceiling play on Monday. There was a projection or news that stated a potential earning/ sales growth of P8 billion from the three projects of the said company.
Many interpreted that news as a bullish signal that drove the price higher than expected. Every time there’s a ceiling play that happens, expect MACD to also fluctuate together with the historical volatility.
Extremely High-Risk Level
Last week, SOC’s volatility score was only at 35%. That was the time when SOC had a low-risk level. Because of the ceiling play, the historical volatility shoots up to 233%. That’s already an extremely high-risk level for SOC.
If you’re a newbie trader, ask yourself if this kind of extreme risk level is aligned with your personal risk tolerance. If you managed to trade SOC after seeing that disclosure, my advice is that you make some profit taking near the closing price at 1.11. You should have already locked in your profits today near the resistance.
Know that there were several attempts to break out above 1.11 since 2014. Those attempts were unsuccessful in terms of breaking out above the resistance.
Consider that historical price behavior of SOC when it comes to deciding whether you should lock in some profits or hold your position.
Net Foreign Trade
Actually, it is insignificant with only PHP 3,410.00 worth of net foreign selling. Let’s not factor that in on our overall sentiment on SOC.
Let me show you as well the range that got the biggest volume and the highest number of trades.
SOC closed at 1.12, and the range that got the biggest volume and the highest number of trades was registered between 1.04 all the way to 1.07.
My Overall Sentiment
Lock in some profits near 1.11 or 1.12. Wait for a pullback between 0.7 and 0.8.
Understand that I did not say that you should automatically buy once the price retreats to the 0.7-0.8 range. You have to re-evaluate every time the price hits a support or resistance level.
Take a look at the volume to see if there’s a chance for that trend in price to be sustainable.
That’s the 13th episode of our EquiTalks program. I encourage you to visit our website www.equilyst.com.
I would like to invite you to my upcoming seminar in Makati City on May 4, 2019, Saturday, from 1 PM to 5 PM. You will find the details here.
Remember, that this seminar is only limited to 30 people. My team and I have decided to conduct small group workshops like this so that I will have more than enough time to address the questions from every attendee in this seminar.
Buy your tickets as soon as possible because we don’t know when will be the next batch for the Makati event. It could be next year since I’m fully loaded for the entire 2019.
I will talk about my Evergreen Strategy to Trade the Stock Market on Your Own. I’m going to show you how you can trade independently and invest profitably.