NIKL Technical Analysis: What to Do if You Missed Today’s Ceiling Play

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NIKL Technical Analysis: What to Do if You Missed Today's Ceiling Play

NIKL Technical Analysis

Nickel Asia Corporation (NIKL) closed at P4.11 per share, up by 50 percent, as of closing on September 2, 2019. The total turnover value was P761,354,480.00. The main players of NIKL today were the local traders.

Foreign investors registered a Net Foreign Buying worth P 157,155,260.00. This is the first time this year that foreign investors registered a Net Foreign Buying that big. Today’s Net Foreign Buying puts the foreign investors in a net buyer’s mode.

Today’s ceiling play has put all oscillators in an exaggerated mode.

So I am not going to say anything about RSI, Historical Volatility, and DMI for now. For as long as you know where your trailing stop loss is, you’re fine.

What was the catalyst on today’s ceiling play?

It’s Indonesia’s announcement that it will ban all nickel ore exports from January 2020.

You have a problem if you don’t know what a trailing stop loss is and how to calculate it.

But if you attended my Evergreen Strategy in Trading and Investing in the Philippine Stock Market seminar (advanced stock market seminar with my proprietary methods in doing technical analysis), you are not clueless.

Brush up on your notes for lesson number 6.

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

Philippine Stock Market Seminar by Jaycee De Guzman of Equilyst Analytics

NIKL broke above two resistance levels today – 3.06 and 3.87. The acting immediate resistance is now at 4.90, while the immediate support is at 3.87.

My 10SMACD combo is valid on NIKL.

Trade-Volume Distribution

Last Price: 4.11
VWAP: 3.616834344
Most Traded: 3.28 – 4.11
Most Voluminous: 3.37 – 4.11

NIKL was force-closed at its intraday high of 4.11 today. That’s the dominant singular price point today. If NIKL starts tomorrow below 4.11, it might play actively between 3.90 and 4. The next dominant range below 3.90 is between 3.30 and 3.60.

Overall, the Momentum Power Indicator is bullish.

True Market Sentiment

True Market Sentiment of NIKL as of Sep-02-2019 at 03:30PM, with a last price of 4.1100.
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: 3.6052
Top 10 Players’ Selling Average: 3.5771
Bonus Info:
3 out of 102 participants or 2.94% of all participants registered a 100% BUYING activity
25 out of 102 participants or 24.51% of all participants registered a 100% SELLING activity

With the top 10 players’ buying average at 3.60, it’s a confirmation that NIKL was only force-closed at 4.11 today. There’s 13.5 million unserved bids today at P4.11 per share.

It’s all the more that you should be on top of your trailing stop loss.

Recommendations

If you have NIKL…

If you still have NIKL, make sure that you did an upward adjustment on your trailing stop loss relative to your percentage of risk tolerance.

Review your handouts for Lesson # 6. If and when NIKL will show signs of a weakening upward momentum tomorrow, especially when the Momentum Power Indicator turns bearish, immediately do an adjustment on your percentage of risk applied to your trailing stop loss.

If you’re planning to trade it…

If you don’t have NIKL, I suggest that you monitor the price action within the first minute of trading tomorrow.

If the 4 elements of our Momentum Power Indicator remain bullish, then, request for NIKL’s latest Trade-Volume Distribution and True Market Sentiment charts in our Private Clients Forum (for subscribers only).

If the dominant range is closer to the intraday high than the intraday low, calculate your reward-to-risk ratio with respect to the immediate support and resistance.

If you’re satisfied with your reward-to-risk ratio, do a test-buy within the dominant range. Make sure that you set your trailing stop loss immediately after entering a new position.

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

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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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