AXLM Technical Analysis: Is It Bound to Test 4.20 This Week?

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Axelum Resources Corp. (PSE:AXLM) closed at P4.35 per share, down by 2.68 percent, as of closing on October 16, 2019, Tuesday.

The total turnover value reached P32.4 million.

Axelum Resources Corp. - Daily Chart EOD - 10.16.2019

Local traders are the main players of AXLM today. Foreign investors registered a Net Foreign Buying worth P5.7 million.

AXLM has only been being traded in the Philippine Stock Exchange for 7 trading days. Therefore, I am not going to cite the status of my 10SMACD and Momentum Power Indicator because it’s not yet applicable.

The immediate support I’m seeing is near 4.20, which is close to the intraday low that was registered on the IPO day of AXLM. The immediate resistance is near 4.70.

Trade-Volume Distribution

Last Price: 4.35
VWAP: 4.384875575
Most Traded: 4.38 – 4.37
Most Voluminous: 4.35 – 4.39

The last price is lower than the Volume Weighted Average Price (VWAP). The last candlestick is red. The dominant range is closer to the intraday low than the intraday high. All of these create the probability of seeing the continuation of the downtrend.

Axelum Resources Corp. - Trade Volume Distribution EOD - 10.16.2019

True Market Sentiment

True Market Sentiment on AXLM as of Oct-15-2019 at 03:30PM, with a last price of 4.3500.
True Market Sentiment: BEARISH
4 of the top 10 brokers registered a positive Net Amount
5 of the top 10 brokers registered a higher Buying Average than Selling Average
Top 10 Players’ Buying Average: 4.3943
Top 10 Players’ Selling Average: 4.3812
Bonus Info:
14 out of 47 participants or 29.79% of all participants registered a 100% BUYING activity
9 out of 47 participants or 19.15% of all participants registered a 100% SELLING activity

This bearish mood of the top 10 players of AXLM today shows the lack of appetite of the majority of the top 10 brokers to buy the dips by a significant level. It’s still more than likely for the downtrend to continue.

Axelum Resources Corp. - True Market Sentiment EOD - 10.16.2019

Recommendations

If you still have AXLM because your trailing stop has not been hit yet, I suggest that you respect your trailing stop. Do not top up yet. Do not average down. I do not see a technical reason for you to average down. In fact, it’s better for you to reduce the percentage of risk applied in your trailing stop. You can use the Trailing Stop Calculator I created.

If you don’t have AXLM yet, do not buy it yet. Wait for the last candlestick to become green, for the last price to become higher than the VWAP, for the dominant range to become closer to the intraday high than the intraday low, and for the last volume bar to become green before you entertain the idea of doing a test-buy.

Before you do a test-buy, make sure that you calculate your reward-to-risk ratio first.

You can use my Reward-to-Risk Ratio Calculator. Do a test-buy within the dominant range if you’re satisfied with your reward-to-risk ratio.

If you’re a subscriber of Equilyst Analytics, I suggest that you ask for our latest analysis and charts of AXLM in our Private Clients Forum so we can tell you if we’re already seeing some strong buy signals.

There’s a registration form at the top and bottom of this article.

Jaycee De Guzman

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