JFC Technical Analysis: Did It Already Find Its Bottom at P220?

0
17
JFC Technical Analysis: Did It Already Find Its Bottom at P220?

JFC Technical Analysis

Jollibee Foods Corporation (JFC) closed at P233.60, up by 2.37 percent, as of closing of August 29, 2019. The total turnover value reached P123,420,990.00.

Jollibee Foods Corporation (JFC) - Daily Chart EOD 1 - 8.29.2019

Foreign investors were the major movers of JFC today. Even if the foreign investors registered a Net Foreign Buying worth P34,563,174.00 today, I say that they still have a topsy-turvy sentiment on this index stock. They are still net buyers year-to-date, courtesy of the P186 million Net Foreign Buying they registered in July.

The immediate support is still at P220.00, while the immediate resistance stays near P240.00. JFC has been trading this range month-to-date.

It’s more likely that those traders or investors who didn’t employ a trailing stop loss on JFC are still experiencing this psychological trauma. So don’t be surprised if ever you’ll see JFC staying in the consolidation phase until such time that the deep-pocketed investors realize that it’s time to buy up on JFC again.

My 10SMACD combo is valid, nonetheless.

RSI already pulled itself away from the classical oversold level. It’s now moving toward the neutral territory.

JFC is now a moderate-risk stock with its historical volatility score of 53 percent.

The downward momentum is still strong. I expect the ADX to go below 25 points once JFC breaks above 260 (resistance after 240) or 290.

Trade-Volume Distribution

Last Price: 233.60
VWAP: 231.8461697
Most Traded: 228.4 – 229
Most Voluminous: 233.6 – 233.6

Jollibee Foods Corporation (JFC) - Trade Volume Distribution EOD 1 - 8.29.2019

There are two dominant ranges on my Trade-Volume Distribution chart for JFC.

The primary dominant range is between P232.00 and P233.60.

The secondary dominant range is between P228.00 and P229.00.

So, if JFC will start at a price lower than 232.00 by the next trading day, monitor the secondary dominant range.

If it starts at a price lower than the secondary dominant range or higher than the primary dominant range, please post a request for JFC’s latest Trade-Volume Distribution and True Market Sentiment charts in our Private Clients Forum (for subscribers only).

Since the primary dominant range is closer to the intraday high than the intraday low, this makes my Momentum Power Indicator bullish.

True Market Sentiment

True Market Sentiment of JFC as of Aug-29-2019 at 03:30PM, with a last price of 233.600.
5 of the top 10 brokers registered a positive Net Amount
5 of the top 10 brokers registered a higher Buying Average than Selling Average
True Market Sentiment: NEUTRAL
Top 10 Players’ Buying Average: 231.7631
Top 10 Players’ Selling Average: 232.1187
Bonus Info:
12 out of 48 participants or 25.00% of all participants registered a 100% BUYING activity
14 out of 48 participants or 29.17% of all participants registered a 100% SELLING activity

Jollibee Foods Corporation (JFC) - True Market Sentiment EOD 1 - 8.29.2019

Like what I’ve said above, I don’t expect JFC to recover super fast. Most investors are still traumatized on JFC, so to speak.

Take a look at the number of 100 percent buyers and sellers. They almost hit a tie.

Recommendations

You can do a test-buy on JFC since my 10SMACD combo is valid and my Momentum Power Indicator is bullish. Before you do that, calculate your reward-to-risk ratio first. It doesn’t make sense doing a test-buy on any stock if you are not satisfied with your reward-to-risk ratio even if my 10SMACD combo is valid and my Momentum Power Indicator is bullish. Do not expect much, however. If you can’t extend your patience trading JFC, you’re better off finding stocks that are not trading a range.

Now, if you already have JFC and if it’s still trading above your trailing stop loss, you can top up within the primary dominant range first.

Please respect your trailing stop loss. Again, don’t expect much on JFC at this point.

Did JFC already find its bottom at P220.00?

Apparently, it respected the support at that level. It’s still quite tough to say that JFC already found its bottom at P220.00 at this point because it is yet to break its immediate resistance level at P240.00. But for as long as my 10SMACD combo remains valid and my Momentum Power Indicator remains bullish, there’s a data-driven chance for JFC to re-test the resistance at P240.00.

The bottom line is that you should know where to adjust your trading plan depending on what you see on the prevailing data. If you got a bullish stance on a stock yesterday but the prevailing set of data tells gives you a bearish stance, you can’t be a hard-headed trader by saying, “Nah, I got to be bullish despite the bearishness I see because I got a bullish assessment yesterday. If yesterday was a bullish day, it got to be a bullish day today!” If that’s how you think, you got to stop trading effective immediately.

The Evergreen Strategy in Trading and Investing in the Philippine Stock Market SEMINAR

 

Philippine Stock Market Seminar by Jaycee De Guzman of Equilyst Analytics

Subscribe to Equilyst Analytics So I Can Guide You

We can accommodate your needs whether you’re a short-term trader or a long-term investor.

Get all 6 in 1 subscription when you choose me as your mentor.

  • Trade Setups for Short-term Traders
  • Investment Guide for Long-term Investors
  • Mentoring in the Private Clients Forum
  • Eligibility to the Referral Incentive Program
  • 50% Discount in our The Evergreen Strategy in Trading the Philippine Stock Market Seminar anywhere in the Philippines
  • FirstMetroSec PRO Access (2 months free)

Click here to learn why the former subscribers of the Truly Rich Club of Bo Sanchez (based on the testimonials they wrote) say that Equilyst Analytics is better than the Truly Rich Club.

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

Do you have a comment?

This site uses Akismet to reduce spam. Learn how your comment data is processed.