DoubleDragon Properties Corp. (PSE:DD) closed on Friday at 27.05 per share. It went up by 3.05 percent from its closing price on the previous trading day. The acting support is near 24.00 while the resistance is near 28.00.
DoubleDragon managed to regain its bullish position both in the short-term and long-term scales on April 11, 2019. That was the day when the price ascended above the 10SMA and the MACD registered a golden cross above the signal line. It’s a buy-signal for me when there’s no liquidity issue, when the price moves above the 10SMA, and when MACD crosses above the signal line. Of course, there are other things that must be present to get a high-conviction bullish call for a buy-signal.
I am already seeing a perfect bullish alignment among the SMAs of DD. The next resistance above 28.00 is 37.00 but 33.00 acts as a precursor.
So, if you are following my 10SMA-MACD combo, you would have caught that buy-signal and managed to enter between 23.10 and 23.65. Your holdings on DoubleDragon would have grown already between 13 to 16 percent by now.
Trade-Volume Distribution Analysis
Most Traded Prices: 27, 26.95, 27.1, 27.05, 27.15
Most Voluminous Prices: 27, 26.95, 27.05, 27.15, 27.1
The closing price last Friday was above the Volume Weighted Average Price (VWAP) of 27.02. The volume was also bullish as it was more than above the 50% of the 10-day volume average. In this price performance of DD, you won’t see any formation of a bearish convergence between MACD and the signal line. I know that’s obvious for the experienced ones but I want to give some pointers to the relatively new traders. At least, they have some words to search Google to expand their knowledge.
Top 10 Players Analysis
Trading participants of DD with a 100% Buying and Selling Activity as of May-03-2019 at 03:30PM:
- 13 out of 39 participants or 33.33% of all participants registered a 100% BUYING activity
- 12 out of 39 participants or 30.77% of all participants registered a 100% SELLING activity
- Top 10 Players’ Buying Average: 27.0191
- Top 10 Players’ Selling Average: 27.0165
I see a neutral sentiment on my top 10 players analysis. At this point, there seems to be a tug-of-war of sentiment between significant buyers and significant sellers. How did I say that? Look at the number of trading participants with 100% buying conviction versus the ones with 100% selling conviction. Isn’t it almost close to a tie? Also, look at their buying and selling averages. They’re both positioned at 27.02 if you will round it off to the nearest hundredths. Isn’t the official VWAP at 27.02 also? Now, connect all those dots.
Overall Sentiment and Recommendation
I am bullish on DD both in the short-term and long-term. Please be on top of your trailing stop loss if you already have this stock in your portfolio.
Please watch the video below (I spoke in Filipino-English) for you to understand why I do not use a predefined Target Selling Price but a Trailing Stop Loss instead.
The RSI of DD is already approaching the classical overbought level. Consider locking-in some profits once the price draws closer to the resistance at 28.00. It’s more likely for the price to bounce away from that level going back to its previous support.
The market can prove me wrong. When that happens, at least, you already locked-in some profits and you generated some cash for you to buy new shares of DD if you want to. At least, that cash doesn’t have to be a fresh cash from your pocket.
You don’t have DD? I’m sure you’d like to know if it’s logical to enter a new position. Look for these signs before you enter a new position.
- the last candlestick must be green
- the last price must be above the VWAP
- volume must be at least higher than the 50% of the stock’s 10-day volume average
- the most traded and most voluminous range must be closer to the intraday high than the intraday low
If and when these 4 signs are present, calculate your reward-to-risk ratio. If you’re happy with the reward-to-risk ratio you got, it is logical to do a test-buy. Don’t buy at any price. Buy within the most traded and most voluminous range only.
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I hope this helps. If it does, please let me know in the comments Thank you!