AbaCore Capital Holdings, Inc. (ABA) closed at 0.68 on May 2, 2019. That was equal to its volume weighted average price of 0.68. The green candlestick was matched with a volume that is above ABA’s 10-day volume average. Support is near 0.53 and resistance is near 0.86.
Although the green candlestick, the closing price above the VWAP, and the presence of a volume above its 10-day volume average are bullish signals, I got a neutral sentiment in my trade-volume distribution analysis.
Trade-Volume Distribution Analysis
There seems to be a tug-of-war between the bears and bulls in my trade-volume distribution charts. For one, the closing price is just equal to the VWAP if we are to round off the VWAP to the nearest hundredth.
Most Traded Prices: 0.68, 0.67, 0.66, 0.69, 0
Most Voluminous Prices: 0.68, 0.67, 0.66, 0.69, 0
I see a mid-term resistance (a range) between 0.73 and 0.76 as a precursor to 0.86. That range is the intersection between the 10SMA and the 50SMA.
If ABA will break above that range with a bullish volume above the stock’s 10-day volume average, that will increase the probability of seeing ABA breaking out above 0.86.
My buy-signal appeared last April 17, 2019. That was the day when MACD crossed above the signal line and the price went above the 10SMA. Volume was flimsy on that day but I thought a test-buy wouldn’t hurt for as long as I’m on top of my trailing stop loss.
Besides, I was quite happy with my reward-to-risk ratio relative to the distance of my entry price to the resistance and the support levels.
Top 10 Players’ Sentiment
Trading participants of ABA with a 100% Buying and Selling Activity as of May-02-2019 at 03:30PM:
- 9 out of 54 participants or 16.67% of all participants registered a 100% BUYING activity
- 18 out of 54 participants or 33.33% of all participants registered a 100% SELLING activity
- Top 10 Players’ Buying Average: 0.6743
- Top 10 Players’ Selling Average: 0.6734
On the other hand, one-third of today’s trading participants registered a 100% selling activity on ABA. This somewhat justifies the neutral sentiment I saw on my trade-volume distribution analysis. Perhaps, other traders decided to rake in profits when they saw that gap above the candlestick of April 28, 2019.
Overall Sentiment and Trade Plan
While I remain bullish on ABA, I am somewhat in a risk-averse position on it already. I will closely monitor the 0.73-0.76 range to see if there will still be a bullish volume within that range when the price enters that area. If the volume maintains its position above the 10-day volume average when the price enters that area, I might consider sticking with my trailing stop loss and not to pre-empt it.
If the concept of using a trailing stop loss is new to you and you’ve accustomed yourself to using a target selling price, please watch this video.
For as long as I see a green candlestick that is moving above the VWAP, a green volume above the 10-day volume average, and a most traded and voluminous range that’s closer to the intraday high than the intraday low, I will hold my position or entertain the idea of topping up. I will trim my position if any of those criteria become false.
How about you? What’s your overall sentiment on ABA?
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I hope this helps. If it does, please let me know in the comments Thank you!