Welcome to the 14th episode of our EquiTalks program.
You can still watch, listen, and read the previous episodes by visiting www.equilyst.com. Click on the Learn Menu where you will find EquiTalks Video, EquiTalks, Audio, and EquiTalks Note.
For today, I’d like to talk about DoubleDragon Properties Corporation (DD).
The stock has a 1.61945 cash dividend with an ex-dividend date of April 2, 2019.
If you’re going to buy DD shares before April 2 and keep those shares at least until April 2 as well, then you will receive dividends. But if you’re going to buy DD shares either on or after April 2, those shares will no longer be entitled to this dividend.
Now, if you’re going to sell your DD shares before April 2, you will not receive dividends. But if you’re going to sell on or after April 2, you will still receive this cash dividend on the payment date.
DoubleDragon closed at 22.40 as of Monday, March 25, 2019. Although above the 10-day simple moving average, the longer-term moving averages are still above the shorter-term ones.
That kind of alignment is a picture of a bearish arrangement of moving averages. DD may appear bullish in the short-term, but it still isn’t out of the woods when it comes to longer-term scale.
Today’s red candlestick came with a volume that’s below its 10-day volume average. What does this mean to me?
If it’s a red candlestick and the volume isn’t that high, for me, it means that the descent in price may not continue. There’s a probability for DD to respect the support in congruence with the position of the 200-day SMA, between 22.10 and 22.20.
Net Foreign Buying
Today’s net foreign buying is worth PHP 2 million. Since the price is still moving above the 10-day SMA, MACD also maintains its position above the signal line.
Consequently, the good thing about MACD’s position is the lack of formation of a bearish convergence with a signal line. It seems that DD holders or traders are not yet that convinced to do massive selling of this particular stock.
DoubleDragon still has a low-risk level because of its volatility score of 50%.
Support is at 20.18 and resistance is at 24.00. Today’s closing price is closer to the resistance than to the support level.
The 2019 year to date net foreign trade is a net foreign buying for DD. Foreign investors remain bullish because they have more net foreign buying days than their net foreign selling days this year.
The closing price is 22.40, and this price is closer to the intraday high than to the intraday low. The range that got the biggest volume and the highest number of trades is between 22 to 22.5.
If you’d like to understand why I am emphasizing the range, I would recommend that you visit our website, click on Services, and then, Subscription. I have explained why it is essential not to ignore the range that got the biggest volume and the highest number of trades with examples.
If you understand that, you’ll be pretty much ahead of many traders and investors in your game.
My Overall Sentiment
Now that you’ve heard the range, I’d like to mention my overall sentiment and recommendations for this stock now.
My overall sentiment for DD is neutral to bullish. My recommendation is that if you already have DD, make sure that you know where your trailing stop loss is.
Trailing Stop Loss
If this is the first time that you’ve heard the phrase “trailing stop loss,” that means to say you have not calculated your TSL yet. My recommendation is this: if your average cost is higher than the current price of DD, make sure that you estimate your trailing stop loss from your average price.
However, if your average price is less than the current rate of DD, calculate your TSL from the current price, which is 22.40.
How do you do that? Let’s say your risk tolerance is only 5% for DD. To calculate your trailing stop loss, you have to know what’s 5% below your basis for trailing stop loss. If your assumption is your current price, then know what’s 5% below the current price, and that’s your trailing stop loss.
How do you activate it? As soon as the current price hits the trailing stop loss, then you have to sell. Do you have to sell at once or in tranches? It’s up to you; the bottom line is you have to sell once your trailing stop loss is hit.
TSP is the representation of your tolerable risk. Do not trade more risk than what you can only handle.
If you don’t have DD yet, then, my recommendation is that you wait for a pullback at least between 20 per share to 21. I like the 21.20 area because that’s the intersection between the 10-day simple moving average and the 50-day simple moving average.
If you’d like to get more than this, I suggest that you take a lot at our services on our website www.equilyst.com/subscribe.
You will then get a tour of what’s included in this particular subscription service. You will get access to our trade setups for short-term trading, investment guide for long-term investing, and direct consultation through our Private Clients Forum.
I strongly advise that you read these three individual pages on our website for you to understand what you’re getting even before you subscribe.
Equilyst Analytics Seminar-Workshop
I would like to welcome you to my upcoming seminar in Makati City, on May 4, 2019. I will be discussing my Evergreen Strategy to Trade the Stock Market on Your Own.
By the way, I can only accommodate a maximum of 30 people. My team and I decided to conduct small group workshops like this so that I would have ample time to address individual questions.
Slots are very limited. If I were you, I’d book my slot for the May 4 Workshop. The rest of the details are on here.
You’ve just heard our EquiTalks Episode 14. Have a great day.