NOW: Jump Up to 20 or Dive Down at 10 Next Week?

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NOW Corporation registered its all-time high at 20-apiece last February 15, 2018 around 10am. The intraday sentiment was bullish in the first half of trading until the bulls exchanged table with the bears around 2:30pm. The exchange in position was done with a significant volume.

NOW dove to as low as 9-apiece last Thursday but it managed to rebound all the way to 16.80-apiece around 3:05pm. With only a few minutes before the closing bell and the last trading day of the week in lieu of the Chinese New Year last Friday, NOW failed to sustain the intraday recovery and settled down at 13.98-apiece.

You can see what I’ve been saying if you’ll pull out the 5-minute chart of NOW like what I’ve shown below.

NOW Corporation - 5-Minute Chart - February 15, 2018

RSI and Stochastic show that NOW is overbought. Despite that, you cannot expect MACD to turnaround from bullish to bearish with just a day of a bearish price movement. MACD is still far from kissing the signal line.

Will NOW revisit the 15-apiece level next week?

NOW must maintain its position above 11.74 which is the 38.2% Fibonacci retracement to increase its chance of revisiting the 15ish level. If it breaks below 11.74, it must rebound from 10-apiece, which is in confluence with the 50% of the Fibonacci retracement. It is believed that downward trending stocks treat the 50% Fibonacci retracement as a rebounding zone. Well, we’ll see it when we see it, I should say. Failure to rebound above 10.00 might allow you to pick NOW within the 7.30-8.50 range. You can see all these price levels on the chart below.

NOW Corporation - Chart - February 15, 2018

What is the sentiment of the top 10 players of NOW for the whole week?

Participants with a 100% Buying and Selling Activity from Feb-12-2018 to Feb-15-2018 at 03:30PM:

  • 6 out of 109 participants or 5.50% of all participants registered a 100% BUYING activity
  • 4 out of 109 participants or 3.67% of all participants registered a 100% SELLING activity
  • Top 10 Players’ Buying Average: 13.0345
  • Top 10 Players’ Selling Average: 12.9405

Take a look at the Total Turnover Value of COL Financial for the entire week. Did you receive the newsletter of the Chairman and CEO of COL Financial apologizing about the downtime on their system due to an unexpected heavy volume of transactions for NOW? That’s over 3 billion worth of TTV! This is just NOW. That should explain the situation.

Anyway, I’m not paid to help COL Financial explain the situation to you but I just thought about mentioning that.

If you’re just planning to enter a new position on NOW, realize that the buying average of this week’s NOW traders is near 13-apiece. NOW closed at 13.98. Are you willing to wait till it goes down to 13-apiece again or you can stomach a bigger risk? Only you can answer that.

Some of you might be piggy-backing the movements of some brokers. Here you go. I give you my WTD Top 10 Players chart for NOW. See these top 10 participants’ individual buying and selling averages. This will give you an idea where to enter a new position or rake in profits.

NOW Corporation - Top 10 Players - Feb. 12-15, 2018

How does the sentiment of the top 10 players last Thursday look like?

Participants with a 100% Buying and Selling Activity as of Feb-15-2018 at 03:30PM:

  • 6 out of 103 participants or 5.83% of all participants registered a 100% BUYING activity
  • 5 out of 103 participants or 4.85% of all participants registered a 100% SELLING activity
  • Top 10 Players’ Buying Average: 17.5666
  • Top 10 Players’ Selling Average: 17.1149

NOW remains a highly-participated stock last Thursday. The top 10 players registered a buying average that is higher than their selling average.

But remember, NOW closed at 13.98.

If the top 10 players’ buying and selling averages were stuck at 17.56 and 17.11, respectively, and the closing price is at 13.98, what comes to your mind?

Did NOW holders continue to hold their position above 17?

The answer is NO.

How did I know?

Didn’t I just show you my week-to-date Top 10 Players chart? Go back to the WTD Top 10 Players chart and you’ll see the week-to-date buying and selling averages of this week’s participants.

The chart below, while it shows that the buying and selling averages were registered at 17.56 and 17.11, respectively, it means these 10 brokers partially locked-in profits and registered some attempts to enter a new position, probably, for day-trading purposes.

NOW Corporation - Top 10 Players - Feb. 15, 2018

Are foreign investors heavily invested on NOW?

On a 30-day trading period, NOW is on a Net Foreign Selling worth PHP56,549,510.00.

NOW Corporation - Foreign Fund Flow - Feb. 15, 2018

What does my Risk Level chart say about NOW?

NOW is an extremely high-risk stock. If you are a newbie in stock trading, I suggest you find low- to medium-risk stocks.

If you’re one of our clients at Equilyst Analytics Inc (through our brand Stock Signals Philippines), you will find my Risk Level chart for each of the stocks listed on the Philippine Stock Exchange. In a single click, you’ll be able to sort all the low- to medium-risk stocks.

NOW Corporation - Risk Level - Feb. 15, 2018

My Overall Sentiment

Did you enter a position on NOW when the price moved above the 10SMA and the MACD crossed above the signal line? That’s one of my trading strategies. I have explained that in this article.

If you did, let your trailing stop-loss take care of you. You’ll be fine. Click here to know how I use a trailing stop-loss and why you should, too. A trailing stop-loss does 3 Ps. It preserves your capital, protects your gains, and prevents losses more than what you can only handle.

See, it doesn’t matter whether I am bearish or bullish on a stock because my trailing stop-loss can take care of me. It’s up to me if I want to buy or sell in tranches.

Do you find my article helpful? I would love to read your comments below and tell me what you liked the most in my analysis. Don’t be stingy in telling me what you think. You don’t have to write a 1,000-word comment like how I wrote this analysis to express your thoughts about my analysis.

Jaycee De Guzman

Jaycee De Guzman

I have helped thousands of Filipinos trade independently and invest profitably through the Equilyst Analytics, Inc. I have also helped hundreds of SMEs and Fortune 500 companies build and boost their online presence through iPresence Digital Marketing, Inc. Read my About Me page.
Jaycee De Guzman

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