Kepwealth (KPPI) Technical Analysis: Can Strike Above 8.50 Tomorrow?

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Kepwealth (KPPI) Technical Analysis- Can Strike Above 8.50 Tomorrow?

Kepwealth Property Phils. (KPPI) Technical Analysis

Kepwealth Property Phils. (KPPI) debuted in the Philippine Stock Exchange today, August 19, 2019. It opened at 5.87, hit an intraday low of 5.84 and an intraday high of 8.49, and closed at 8.15 per share, up by 41.99 percent. The total turnover value is almost P227 million.

Kepwealth Property Phils. (KPPI) - Daily Chart EOD - 8.19.2019

KPPI is not that popular among foreign investors as they only bought P1,446,344.00 and sold P749,670.00 worth of KPPI shares today, resulting to a Net Foreign Buying worth P 696,674.00.

I don’t use the intraday charts unless it’s the first day of IPO stock. In this case of KPPI, I used a 3-minute chart to identify the intraday support and resistance.

The intraday support is registered at 7.84 as a precursor to 7.43. The intraday resistance is at 8.42.

If it breaks above 7.43, its psychological resistance is pegged near 10.00, which is in confluence with the 61.8 percent extension of the Up Fibonacci.

Volume was heavier in the first half of trading than the second half.

KPPI was stuck at the 7.84-8.42 range after recess.

Trade-Volume Distribution

Last Price: 8.15
VWAP: 7.498506811
Most Traded: 7 – 8
Most Voluminous: 8.11 – 8

Kepwealth Property Phils. (KPPI) - Trade Volume Distribution - 8.19.2019

The dominant range of KPPI is between 8.00 and 8.30. This is closer to the intraday high than the intraday low.

Since this is an IPO stock, even if 3 of the 4 components are the only ones present, I will consider this as a bullish Momentum Power Indicator. One of the four components of my Momentum Power Indicator requires historical data longer than one day.

Those who attended The Evergreen Strategy in Trading the Philippine Stock Market seminar, please refer to Lesson # 2 on your handouts. You should already know what this means.

Please brush up on these 6 lessons I taught you during this whole-day seminar.

Lesson 1: how to identify the best stocks to trade
Lesson 2: how to check if the current trend is more likely to continue
Lesson 3: how to know the true market sentiment
Lesson 4: how to identify a confirmed buy signal
Lesson 5: how to identify the best price range to trade
Lesson 6: how to sell more logically and less emotionally

Below is my schedule for this seminar.

Get your ticket while the early bird rate is up this week.

True Market Sentiment

True Market Sentiment of KPPI as of Aug-19-2019 at 03:30PM, with a last price of 8.1500.
2 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: 7.4825
Top 10 Players’ Selling Average: 7.6348
Bonus Info:
2 out of 91 participants or 2.20% of all participants registered a 100% BUYING activity
28 out of 91 participants or 30.77% of all participants registered a 100% SELLING activity

Kepwealth Property Phils. (KPPI) - True Market Sentiment - 8.19.2019

Despite the impressive Day Change % of KPPI today, my true market sentiment is bearish. This doesn’t give me the confidence to say that the ascent in price is more likely to continue. On top of that, almost one-third of today’s participants decided to do a day-trading on KPPI. In other words, one-third of the participating brokers locked-in their profits today.

I am not surprised to see this because it’s going to be a speculation play on IPO stocks, at least, for the first week or two. This is one of the trade setups on IPO stocks: intraday trading.

Recommendations

At this point, being it’s the first day of KPPI as a publicly-listed company, there’s not much historical data we can use to have a pretty stable forecast on the next probable direction of KPPI.

But basing it on the presence of the three components of my Momentum Power Indicator, I’d say that there’s a chance to see KPPI in the green zone again tomorrow. Just keep an eye to the intraday price of action of this stock if you’re going to trade this name.

How do I trade IPO stocks?

I do a test-buy within the dominant range after the first 60 seconds of trading. I might consider topping up, depending on the size of my “play money,” provided the dominant range stays closer to the intraday high than the intraday low.

Of course, I check my True Market Sentiment chart to see if I’m the only trader who’s excited to buy the stock at a higher price. I can’t be the only excited trader to buy at a higher price. I must see a bullish True Market Sentiment to boost my confidence to buy at a higher price. Those who attended The Evergreen Strategy in Trading the Philippine Stock Market know this very well. I discussed this in Lesson # 3.

I keep an eye to my trailing stop loss. I don’t forget to do an upward adjustment on my trailing stop loss every time the prevailing price goes higher than my previous basis for my trailing stop loss. Those who attended my advanced stock market seminar, please refer to the handouts for Lesson # 6.

Now, as soon as any of the three (excluding the 4th) components of my Momentum Power Indicator becomes absent or bearish, I will check signs of a weakening upward momentum.

If signs of a weakening upward momentum are spotted, I will adjust the percentage of risk initially applied to my trailing stop loss. Seminar attendees, please refer to your handouts for Lesson # 6 again.

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Please wait for my Top 5 Gainers and Top 5 Losers Analysis video tonight. I’ll talk more about KPPI.

Below is my schedule for The Evergreen Strategy in Trading the Philippine Stock Market seminar.

Get your ticket while the early bird rate is up this week.

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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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