Aboitiz Power Technical Analysis: Poised for a Technical Correction?

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Aboitiz Power Technical Analysis: Poised for a Technical Correction?

Aboitiz Power Corporation Technical Analysis

Aboitiz Power Corporation (AP) closed at 39.95 per share, up by 1.14 percent, as of closing on September 20, 2019. The total turnover value ended at P160.8 million.

Aboitiz Power Corporation (AP) - Daily Chart EOD - 9.20.2019

Foreign investors were the main drivers of the price action. Today is a Net Foreign Buying worth P26.5 million. Foreign investors remain as net buyers year-to-date.

If you’re going to use the position of the last price relative to the position of the Simple Moving Averages, you can say that Aboitiz Power is bullish both in the short-term and long-term periods. The shorter-term SMAs are hovering the longer-term moving averages.

AP manages to maintain its position above the support at 39. Resistance is at 43. If it will break below 39, that price will become its immediate resistance and the support will be 34 once again.

My 10SMACD combo is valid for Aboitiz Power.

Risk level is low due to its historical volatility score of 27 percent.

While the +DMI is still hovering the -DMI, the ADX is at 22 points only. Will it be a more bullish rating if the ADX is above 25 points while the +DMI is above the -DMI? Yes, it is. My estimate is that ADX will only reach 25 points once the prices enters the 41 to 41.50 range.

Trade-Volume Distribution

Last Price: 39.95
VWAP: 39.82816239
Most Traded: 38.9 – 39.95
Most Voluminous: 39.95 – 39.95

Aboitiz Power Corporation (AP) - Trade Volume Distribution EOD - 9.20.2019

Today’s closing price is the intraday high. With the dominant range being closer to the intraday high than the intraday low and with the last price being higher than the VWAP, this makes a bullish Momentum Power Indicator.

Ascent in price is more likely to continue when my 10SMACD combo is valid and when the Momentum Power Indicator is bullish. It can also be considered as a buy signal.

However, please remember what I taught you during the Evergreen Strategy in Trading and Investing in the Philippine Stock Market seminar. Aside from a valid 10SMACD combo and a bullish Momentum Power Indicator, you should be satisfied with your reward-to-risk ratio before you decide to do a test-buy within the dominant range. Please review your handouts, especially Lesson # 6 on this matter.

True Market Sentiment

True Market Sentiment of AP as of Sep-20-2019 at 03:30PM, with a last price of 39.9500.
5 of the top 10 brokers registered a positive Net Amount
4 of the top 10 brokers registered a higher Buying Average than Selling Average
True Market Sentiment: BEARISH
Top 10 Players’ Buying Average: 39.7275
Top 10 Players’ Selling Average: 39.8047
Bonus Info:
2 out of 29 participants or 6.90% of all participants registered a 100% BUYING activity
9 out of 29 participants or 31.03% of all participants registered a 100% SELLING activity

Aboitiz Power Corporation (AP) - True Market Sentiment EOD - 9.20.2019

The mood of the top 10 brokers today was bearish. Meaning to say, they only took it easy today. The usual mood on a Friday materialized. Nonetheless, this is only a checker of the mood of the top 10 brokers. This is not the overall sentiment for AP.

Recommendations

If you have Aboitiz Power and your trailing stop loss has not been hit yet, you have data-driven reasons either to hold your position or top up within the dominant range. Yes, if you choose to top up, do not do what peso-cost averagers do. Don’t just buy at any random price below your Buy Below Price. When you know where the dominant or favorite range is, you’ll be able to position more strategically and realistically. What makes it “strategic” and “realistic”? That’s something I need to discuss live in the Evergreen Strategy in Trading and Investing in the Philippine Stock Market seminar.

If you don’t have Aboitiz Power and you’re planning to enter a new position, you may also position within the dominant range. If you’re going to calculate your reward-to-risk ratio, you’ll get an attractive once since the last price is a lot closer to the immediate support than the immediate resistance. In other words, you’ll get a thicker potential reward than your potential risk.

Finally, always set your trailing stop loss relative to the percentage of risk that you can only handle. For short-term trading purposes, my maximum risk percentage is 10 percent. For long-term investing, my maximum risk percentage is 30 percent.

Your trailing stop loss your protection just in case this data-driven assessment will be contradicted by the market on Monday.

Does it really happen that no matter how much data you’ve used as bases, the market still contradicts the forecast? Yes, and I’ve lost count already.

Your trailing stop loss preserves your capital, protects your gains, and prevents unbearable losses.

Come, and attend my Evergreen Strategy in Trading and Investing in the Philippine Stock Market seminar so I can teach you my original scientific methods in trading and investing from stock selection all the way to the execution of the selling plan.

If you’re a subscriber of Equilyst Analytics, I strongly suggest that you request for AP’s latest analysis on Monday if you have this stock or if you’re planning to trade it. Maximize your access to the Private Clients Forum. That’s the only place where you can ask me and other analysts whom I personally trained.

Jaycee De Guzman

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