Last 18 February 2018, I wrote my first analysis for Now Corporation (NOW) this 2018. If you are one of my regular readers, you know that I do not write anything in my analysis that dictates whether you should or sell a certain stock.
All I want is to give you a data-driven and easy-to-understand analysis. It’s up to you what you’d like to do with your money. But if you read my first analysis of NOW with comprehension, you understood that I was bearish with NOW although sideways movements were felt on from the third week of February until the third week of March. I discussed about that on the second part of my analysis of NOW.
On the very day that NOW hit 20.00-apiece, I was already so bearish on NOW that I have projected it to hit 10 or below based on the selling sentiment I saw on my Top 10 Players chart. Understand that I am not trying to emphasize that I was right. I want to emphasize the usefulness of being data-driven. While being data-driven does not excuse you from losses, it helps you trade with calculated risks.
A data-driven trader, with a mentor who can interpret the data in layman’s terms, has a high probability of trading with more wins and a few losses.
Anyway, I’m not going to re-tell my entire analysis for the two previous posts. Just click the two links above if you’d like to revisit what I said in those articles.
Let’s talk about what happened to NOW today.
On the daily chart, you can see that NOW wants to test the support at 5.80 as a precursor to 4.24. The nearest resistance stands at 8.40 followed by 12.00. No deep-checking is needed for you to see how bearish NOW is based on its MACD.
While NOW is yet to enter the confirmed bearish state based on the classical definition of the bearish level for RSI (which is 20), Stochastic has already placed NOW in a confirmed oversold territory.
My 200-SMA touches the support at 4.24. NOW is already in a bearish channel on the short-term and medium-term perspective. NOW will be completely bearish even on the long-term time period once it breaks below 4.24.
Today’s bearish price action came with a volume that surpassed the previous days’ volume. As of March 26, 2018, at 03:30PM, the volume is 264.81% of the previous trading day. I’ll repost my equations for price-volume correlation below for the benefit of my new followers and readers.
- bullish price + high volume = high sustainability (price)
- bullish price + low volume = low sustainability (price)
- bearish price + high volume = high sustainability (price)
- bearish price + low volume = low sustainability (price)
My Price-Volume Distribution chart for NOW proves how bearish the intraday price action was. The majority of trades were registered on the lower half of the chart. If you plan to trade NOW, monitor it below the intraday low it registered today. The price at the bottom of my PVD chart represents the intraday low. The one at the very top represents the intraday high.
Foreign investors have not found the catalyst that would change their outlook from bearish to bullish on NOW. So, on a 30-day trading period, NOW is on a Net Foreign Selling worth PHP68,297,615.00.
Here’s the summary of the top 10 players of NOW last week.
Participants with a 100% Buying and Selling Activity from Mar-19-2018 to Mar-23-2018 at 03:30PM:
- 8 out of 101 participants or 7.92% of all participants registered a 100% BUYING activity
- 1 out of 101 participants or 0.99% of all participants registered a 100% SELLING activity
- Top 10 Players’ Buying Average: 9.5311
- Top 10 Players’ Selling Average: 9.5951
Although 33 out of 88 brokers registered a 100% buying activity on NOW today, I don’t see taller green bars on my chart below. It looks like many hopefuls bought NOW at a higher price thinking it would change its course today.
Because my clients can request for their stocks’ Top 10 Players chart in our Private Clients Forum, they need not rush buying or selling a stock. I tell them if the bullish price action matches the overall sentiment that the top 10 players show.
There are cases when the price is moving up but the top 10 players have already started selling their shares. I can see that in my Top 10 Players chart. In contrary, there are also cases when the price is going down but the top 10 players are bullishly buying the dips.
Aside from our Private Clients Forum, we also discuss the 2-month, month-to-date, week-to-date, and end-of-day Top 10 Players of the 5 stock analyses that we send to our clients from Monday to Friday. I would recommend subscribing to our Daily Stock Analysis to receive 5 comprehensive stock analysis per day.
I can see that in my Top 10 Players chart.
Participants with a 100% Buying and Selling Activity as of Mar-26-2018 at 03:30PM:
- 33 out of 88 participants or 37.50% of all participants registered a 100% BUYING activity
- 6 out of 88 participants or 6.82% of all participants registered a 100% SELLING activity
- Top 10 Players’ Buying Average: 7.2788
- Top 10 Players’ Selling Average: 7.2690
My Risk Level calculator shows that NOW is still an extremely high-risk stock.
I only recommend low- to moderator-risk stocks to beginners. My Risk Level calculator considers the historical price movement of the stock and its most recent price fluctuations in giving a risk level score.
This chart is automatically discussed in our Top 5 Gainers and Top 5 Losers Analysis video. Yes, we record our analysis of the top 5 gainers and top 5 losers of the day for 30 to 40 minutes. We mention the risk level of each of those 10 stocks.
Aside from our Top 5 Gainers and Top 5 Losers Analysis video, we also automatically discuss this Risk Level chart in the 5 stock analyses that we send to our clients who have subscribed to our Daily Stock Analysis service.
Those who have subscribed to our Private Clients Forum may also request the updated Risk Level chart of their stocks.
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