I already gave you a clue on what action to take last 19 March 2018.
I mentioned in my article “Leisure & Resorts World (LR): Sell at 8.28 or Catch It at 5.55?” that while the price was bullish, the sentiment coming from the Top 10 Players of LR was no longer proportional with the bullishness of LR’s price. LR was already overbought during that time.
Anyway, if you bought LR when its price closed above the 10SMA and the MACD crossed above the signal line, and you used a trailing stop-loss, I am sure you still ended up on a net gain status.
The only ones who have an extended Good Friday on LR are the ones who did not establish a trading plan before buying LR. It’s resurrection time from that bad trading habit. You can’t be loving the grave.
LR has already broken its bullish pattern as it now traverses the zone below the two shorter-term SMAs. The support’s range is from 5.55 to 6.02. A deeper support level is at 5.19. Resistance is at 7.30.
As of April 5, 2018, at 03:30PM, the volume is 190.94% of the previous trading day. LR’s volume profile supports the bearish price action.
Remember these 4 equations below.
- bullish price + high volume = high sustainability (current price trend)
- bullish price + low volume = low sustainability (current price trend)
- bearish price + high volume = high sustainability (current price trend)
- bearish price + low volume = low sustainability (current price trend)
Do you plan to trade LR anew? Monitor its price direction first, especially its direction below 6.19 should it decide to go lower than that. Should LR treat 6.19 as an intraday support on Friday and starts to move up again, you may refer to the next price points with the biggest volume towards the upper half of the chart as candidates for LR’s intraday resistance levels.
I prefer using our Price-Volume Distribution chart over checking the stock’s intraday chart. Our PVD chart is easier to understand. At a glance, I can see the price points that have been traded the most. It’s faster to identify where I should park my entry or selling price just in case I want to buy or sell as trading happens.
Subscribe to our Private Clients Forum service so you may request your stock’s latest Price-Volume Distribution chart as trading happens especially during recess. It has been my practice to check my stocks’ Price-Volume Distribution chart during recess so I can adjust my trade setup for the afternoon trading if need be.
On a 30-day trading period, LR is on a Net Foreign Buying worth PHP72,684,455.00.
The foreign fund flow of a stock is one of the things I always check, especially when it concerns the stocks that I want to have in my long-term stock portfolio.
Bullish stocks that have a regular and sizable Net Foreign Buying days are worthy to be included in my watchlist.
Bearish stocks that have a regular and sizable Net Foreign Selling days are still worthy to be monitored. Sometimes, those bearish stocks are only waiting for the reversal of sentiment of foreign investors from NFS to NFB for the price to rebound.
My team and I discuss the state of the Foreign Fund Flow of each of the 10 stocks that we analyze in our Top 5 Gainers and Top 5 Losers Analysis. This report is in a video format. Our clients can watch the video via their account and we send them an email once the video is ready. We do this before the start of the next trading day. I advise that you read the full description of our Top 5 Gainers and Top 5 Losers Analysis so you’ll understand why this is one of our best-sellers.
On the other hand, we also prepare 5 comprehensive stock analyses for our clients before the start of each trading day. We prepare these reports in a written format. We also update our clients with the current state of foreign fund flow of those 5 stocks. You will r receive 5 comprehensive stock analyses before the start of each trading day. Yes, they are more comprehensive than the stock analyses I publish for free. Read the full description of our Daily Stock Analysis and know those 10 components of our stock analysis. This is also one of our best-sellers.
LR is a high-risk stock at this point. Beginners, I suggest you stick with low- to moderate-risk stocks as you learn the ropes of independent trading and investing. As you gain knowledge and experience, you increase the risk level of stocks that you can try. But regardless of the risk level of the stock, I strongly advise that you trade or invest in stocks that match your risk tolerance.
No matter how much you like to be an active trader, you shouldn’t force the situation to accommodate your wish especially if you have a day job that interferes with the trading hours in the Philippines. Do not prioritize your preferences over the current processes in the Philippine Stock Exchange. Traders and investors adjust; the market won’t. So profile yourself according to your current circumstances.
Participants with a 100% Buying and Selling Activity as of Apr-05-2018 at 03:30PM:
- 23 out of 66 participants or 34.85% of all participants registered a 100% BUYING activity
- 7 out of 66 participants or 10.61% of all participants registered a 100% SELLING activity
- Top 10 Players’ Buying Average: 6.4318
- Top 10 Players’ Selling Average: 6.4239
LR’s Top 10 Players chart suggests that 6.42 may act as the intraday resistance by the next trading day.
Combining the signals being given by LR’s Top 10 Players and Price-Volume Distribution charts, I’d say it’s worth monitoring this stock between 6.19 and 6.42 by the next trading day.
This Top 10 Players chart of LR is only for 5 April 2018 (EOD). Our Daily Stock Analysis subscribers receive a report where we discuss the 2-month, month-to-date, week-to-date, and end-of-day Top 10 Players chart of the 5 stocks that we analyze before the start of the next trading day. Subscribe to our Daily Stock Analysis so you will receive more information than this free analysis.
Also, I highly recommend that you post a new request in our Private Clients Forum for the latest Top 10 Players chart and Price-Volume Distribution chart of your stock, especially during recess so you can adjust your trade setup for the trading in the afternoon if necessary. My team and I will interpret the charts for you. Just post on the forum. We’ll respond to you.
If your portfolio is in a mess and you don’t know what to do anymore, we can help you through our Stock Portfolio Rehabilitation Program. Check out this service today so you’ll understand why we are the go-to service provider for Filipino investors who feel stuck on their situation and need a professional guidance.
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