Bloomberry Resorts Corporation (BLOOM): Sell at 5.95 or Continue Buying?

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Stock Analysis - JayceeDeGuzman.com

I’d like to talk about Bloomberry Resorts Corporation (BLOOM) today.

Daily Chart

BLOOM almost closed above the resistance at 5.95 today. I must say that BLOOM closed the week strong. There is no upper wick. There’s is no lower wick.

Bloomberry Resorts Corporation - Daily Chart - June 17, 2016

Foreign Flow

Today’s Net Foreign Buying outscored yesterday’s. This positive foreign flow adds up to the bullishness of this stock.

Bloomberry Resorts Corporation - Foreign Flow - June 17, 2016

Online Foreign Brokers’ Transactions

From June 1 to 17, all 11 online foreign brokers played BLOOM. I like how even their stance is. Of the 11, 6 are net buyers as led by DAIWA, MORGAN, and UBS. Net sellers are led by HIAN and DEUTSCHE.

Take a look at their Buy and Sell Averages.

Bloomberry Resorts Corporation - Online Foreign Brokers' Transactions - June 17, 2016

Price-Volume Distribution

This is the price-volume distribution of BLOOM for today only. By simply looking at the position of today’s volume, you can see how bullish traders were. Do you see how 5.85 was cemented with the most number of trades and highest volume today?

Bloomberry Resorts Corporation - Price-Volume Distribution - June 17, 2016

Statistical Volatility

Based on how I interpret its statistical volatility chart, BLOOM is still in the medium-risk level. Please use the SEARCH bar on the upper right-hand side of my website and search for my other articles where I explained how I interpret the statistical volatility chart.

Bloomberry Resorts Corporation - Statistical Volatility - June 17, 2016

Top 10 Players Chart

BDO and MANDARIN are the two brokers with the most bullish stance on BLOOM from June 1 to 17, 2016. Just take a look at their Net Amount relative to their Total Turnover Value. If you’re my client, please refer to our User’s Manual on how we interpret the Top 10 Players chart so you can get the overall market sentiment.

Bloomberry Resorts Corporation - Top 10 Players - June 1-17, 2016

Volume

Price ascends. Volume ascends. Its ascent in price is highly likely to be sustained, at least, that’s the classical way of interpreting the relation between price and volume.

Bloomberry Resorts Corporation - Volume - June 17, 2016

Conclusion

Let me guess your favorite question: “Is it okay to buy BLOOM? If yes, at what price? If no, why not?”

Sorry, I won’t answer that. Let me teach you something else. What’s your overall interpretation of what you’ve read above?

Is it bearish? Don’t buy.

Is it bullish? Test-buy. Then, set your trailing stop-loss.

How do you set a trailing stop-loss? It’s either you set a fixed percentage or a fixed value. If you choose to set a fixed percentage, that percentage should be the percentage of your risk tolerance. I’ll give you an example.

Let’s say your risk tolerance when trading is only at 3%. Let’s also say you bought BLOOM at 5.90. This is how you calculate a simple trailing stop-loss: 5.90 x 0.03 = 0.177.

Let’s round that off to 0.18. Now, subtract 0.18 from 5.90. You will get 5.72. That is your trailing-stop loss.

As BLOOM registers a higher price, your trailing stop-loss moves up. Remember, a trailing stop-loss can only go up. It can’t be reduced. Well, at least, that’s my personal rule when trading.

Do you find this helpful? Let me know in the comments.

Jaycee De Guzman

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