Globe Telecom (GLO) has been moving in a downward pattern since the third quarter of 2015. This puts GLO in a bearish position on a long-term time period. Fortunately for the GLO investors, it seemed to have treated 1475 as a support level. GLO is back to its bullish stance on a short-term time period. GLO will re-enter the bullish stance on a long-term time period once it pierces the 1860-1910 range. Support is at 1,680. Resistance is near 1,900.
On the Stochastic Daily, GLO is very close to the oversold territory but it’s far from being oversold when you stretch your chart from Daily to Weekly and Monthly. This is a perfect example when I said that you should not treat the classical interpretation to just one indicator as your gospel truth when analyzing a stock. You have to confirm the signal that one indicator emits by checking other indicators.
Back in the early 2000s, everyone was saying one should check the intraday chart of a stock to find the most transacted and voluminous price points either as trading happens or once the market is closed. That was a good advice until I developed something that is better where you can identify the price points that have the most trades and volume at a glance. That’s my Price-Volume Distribution chart.
If you only have an access to our Private Clients Forum, you’ll see that the majority of our clients are requesting for their stocks’ Price-Volume Distribution chart all throughout the day. I’ve advised them to request for one during the first 30 minutes of trading, 30 minutes before recess, 30 minutes after recess, and 30 minutes before closing.
See how fast it is to know that 1690 had the biggest volume and the highest number of trades today. Would you know that, in 1 to 2 seconds, by staring at the stock’s intraday chart? No. Even if you’ll stare at your intraday chart it all day and all night long, you won’t know the precise number of trades and volume that was registered to a certain price point of a stock.
Was there a significant cross-trade that happened at 1690? There was. UBS Securities registered a cross-trade of 3,855 shares at 1,690 per share on the 26th minute and 39th second past 3 in the afternoon. Can you see that on your intraday chart?
I can update my clients if there are some significant cross-trades that happened at a particular price so we can discard that when we do volume analysis.
As of May 10, 2018, at 03:30PM, the volume is 71.47% of the previous trading day.
Remember these equations.
- 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 pric
Participants with a 100% Buying and Selling Activity as of May-10-2018 at 03:30PM:
- 10 out of 36 participants or 27.78% of all participants registered a 100% BUYING activity
- 8 out of 36 participants or 22.22% of all participants registered a 100% SELLING activity
- Top 10 Players’ Buying Average: 1698.4734
- Top 10 Players’ Selling Average: 1698.4016
The psychological average price of the top 10 players as of May-10-2018 is between 1698.4734 and 1698.4016.
Foreign Fund Flow
On a 30-day trading period, GLO is on a Net Foreign Selling worth PHP111,149,645.00.
GLO has a moderate-risk level based on my risk level indicator.
When do stocks get high- to extremely high-risk level? It is when their price fluctuates erratically.
When do stocks get low- to moderate-risk level? It is when their price moves up and down organically and gently.
Where will you find the risk level of any stock? You’ll find the risk level of any Philippine stock in our Stock Ranking System.
Beginners, stick with low- to moderate-risk stocks.
GLO is tradable for me for as long as it does not break down below the 10SMA. Of course, I should respect my trailing stop-loss.
Calculate your reward-to-risk ratio before you enter a new position. Why? Because you’ll be required to follow your risk tolerance percentage when you compute your reward-to-risk ratio. Always do a routine that will instill discipline in you.
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