JFC Technical Analysis: Are There Technical Reasons to Buy Now?

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JFC Technical Analysis: Are There Technical Reasons to Buy Now?

Jollibee Foods Corporation (JFC) is trading at 230.20 per share, up by 1.86 percent, as of 2:55PM on October 9, 2019, Wednesday. The total turnover value is at P105 million.

The Net Foreign Buying is at P7.4 million. Local investors are the main drivers of JFC as of the time of writing this analysis. Foreign investors have been consistently closing day in a Net Foreign Buying note for the past 10 trading days not counting today.

Jollibee Foods Corporation (JFC) - Daily Chart 2 - 10.9.2019

The immediate support is near 217 while the immediate resistance is near 240.

My 10SMACD combo is already valid for JFC.

JFC’s risk level remains low based on its historical volatility score of 21 percent.

Trade-Volume Distribution

Last Price: 230.20
VWAP: 229.9055105
Most Traded: 230 – 231
Most Voluminous: 230 – 229.6

Since all four elements of my Momentum Power Indicator (MPI), the overall rating of my MPI is bullish. This technicallly means the ascent in price is more than likely to continue.

Jollibee Foods Corporation (JFC) - Trade Volume Distribution 2 - 10.9.2019

True Market Sentiment

True Market Sentiment of JFC as of Oct-09-2019 at 02:53PM, with a last price of 230.200.
5 of the top 10 brokers registered a positive Net Amount
3 of the top 10 brokers registered a higher Buying Average than Selling Average
True Market Sentiment: BEARISH
Top 10 Players’ Buying Average: 229.8434
Top 10 Players’ Selling Average: 230.0777
Bonus Info:
4 out of 50 participants or 8.00% of all participants registered a 100% BUYING activity
20 out of 50 participants or 40.00% of all participants registered a 100% SELLING activity

On the other hand, the doubt among investors is still reflected in the bearish True Market Sentiment as of the time of writing this analysis.

With 20 out of 50 having a 100 percent selling activity, this shows that some investors are employing the “sell on strength” strategy. I can still sense the “remnants” of the fear brought about by the recent significant decline in the share price of JFC.

Jollibee Foods Corporation (JFC) - True Market Sentiment 2 - 10.9.2019

Recommendations

Are you still holding on to your JFC because your trailing stop has not been hit yet? Do you plan to top up? You may do so since the 10SMACD combo and the Momentum Power Indicator are both bullish. However, please position strategically within the dominant range and not at any random price you’ll see on the ASK column.

Are you planning to enter a new position or do a test-buy on JFC? Don’t be too quick in pushing the buy button. You must calculate your reward-to-risk ratio first. You can use this Reward-to-Risk Ratio Calculator I created so you can see if you’re already satisfied with your RRR. If you’re satisfied with your RRR, you may position within the dominant range also since the 10SMACD combo and the Momentum Power Indicator are both bullish.

Whether you already have or you’re yet to have JFC in your portfolio, make sure that you do an upward adjustment on your trailing stop every time the current price registers a higher prevailing price. You can use the Trailing Stop Calculator I created.

It’s best that you ask for our latest analysis on JFC in our Private Clients Forum if you’re a subscriber of Equilyst Analytics. This is very important because I am not going to advise you to top up or enter a new position if any of the 10SMACD combo or Momentum Power Indicator becomes bearish. Besides, you can only request for the Trade-Volume Distribution and True Market Sentiment charts at Equilyst Analytics.

If JFC will maintain its position in the top 5 gainers’ list with the biggest total turnover value, I’ll discuss it in my daily video tonight. As you may already know, Equilyst Analytics subscribers receive a daily video from me every single day. I discuss 10 stocks in each video.

Jaycee De Guzman

Jaycee Silverio de Guzman is a computer scientist by profession. He is the founder and CEO of iPresence Digital Marketing, Inc. and Equilyst Analytics, Inc. He is a husband and a father.
Jaycee De Guzman

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