NOW Technical Analysis: How Sustainable Is the Ascent Above P3.00?

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NOW Technical Analysis- How Sustainable Is the Ascent Above P3.00?

NOW Corporation Technical Analysis

Now Corporation (NOW) is currently trading at 3.19 per share, up by 49.77 percent, as of 2:07PM GMT + 8, August 27, 2019. The total turnover value is at P224 million.

Foreign investors are net sellers with their Net Foreign Selling worth P5.8 million. They do not have a significant participation in trading NOW, anyway. They are net sellers YTD due to the P6.72 million worth of a Net Foreign Selling they registered in January 2019.

Now Corporation (NOW) - Daily Chart Intraday 1 - 8.27.2019

NOW Corp. broke above the previous resistance at 2.88 per share. That price point now acts as its immediate support. Resistance is at 4.25.

As a technical analyst, I focus on my proprietary way of doing my technical analysis which I teach in my The Evergreen Strategy in Trading and Investing in the Philippine Stock Market seminar.

Did you already attend this live learning event? I’ll teach you what I personally do from stock selection to buying to selling. It’s from point A to Z.

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

Here’s the schedule:

I know you’re eager to ask what propelled NOW to do a ceiling play today. I suggest that you read the latest company disclosure on edge.pse.com.ph for NOW.

The biggest single trades in terms of volume were made between Strategic Equities Corporation, DA Market Securities, Asia Pacific Capital Equities, First Metro Securities, Abacus Securities, Timson Securities, COL Financial, and CitiSecurities.

Strategic Equities Corporation cross-traded 600,000 of NOW shares at P3.19 per share within 7 minutes after recess.

This inorganic or unnatural ascent in price of NOW has made the technical oscillators touch the classical overbought levels. I am not going to rely that much on my oscillators in this case.

Nonetheless, the 10SMACD combo is valid and my Momentum Power Indicator is bullish.

Risk-wise, NOW already has an extremely high risk level based on its historical volatility score at 243 percent.

Trade-Volume Distribution

Last Price: 3.19
VWAP: 3.000915428
Most Traded: 3.02 – 3
Most Voluminous: 3.01 – 3

The dominant range of NOW is between 3.00 and 3.19. It’s closer to the intraday high than the intraday low. This completes the criteria needed for my Momentum Power Indicator to become bullish.

Now Corporation (NOW) - Trade Volume Distribution Intraday 1 - 8.27.2019

True Market Sentiment

True Market Sentiment of NOW as of Aug-23-2019 at 12:00PM, with a last price of 3.1900.
6 of the top 10 brokers registered a positive Net Amount
3 of the top 10 brokers registered a higher Buying Average than Selling Average
True Market Sentiment: NEUTRAL
Top 10 Players’ Buying Average: 2.9913
Top 10 Players’ Selling Average: 3.0120
Bonus Info:
3 out of 79 participants or 3.80% of all participants registered a 100% BUYING activity
21 out of 79 participants or 26.58% of all participants registered a 100% SELLING activity

Now Corporation (NOW) - True Market Sentiment Intraday 1 - 8.27.2019

On the other hand, despite the outrageous ascent in price today, it seems that the top 10 brokers have a divided sentiment. With this neutral true market sentiment, I can sense that those who were holding NOW for such a long time while it was trading the range seemed to have took advantage of the situation and sold their position.

What’s my basis for that?

Just take a look at the size of the white bars of each of the top 10 brokers on my True Market Sentiment chart. Compare the height of the white bars to the height of the green bars of the first 5 brokers. These top 5 brokers are very close to registering a biggest Sold Amount than their Bought Amount.

You must have all the time to monitor the price action of NOW every second if you choose to enter a new position tomorrow.

This neutral sentiment of the top 10 brokers does not show aggressive signs of interests to push the price higher. At this point, NOW is prone to showing us erratic intraday volume spikes, which could lead to a psychological heart attack if you don’t have a strong process in place on how to handle and reach to such situation.

Recommendations

If You Have NOW Above Your Trailing Stop Loss

Are you still holding on your position on NOW and is the last price still trading above your trailing stop loss? If yes, continue holding your position. Do an upward adjustment on your trailing stop loss every time the price goes higher than your base price in calculating your previous trailing stop loss.

If You Bought NOW When It Was Above P4.00 Per Share and You Don’t Have a Trailing Stop Loss

Did you buy NOW when it was above P4.00 per share and you didn’t calculate your trailing stop loss until you read my write-ups about this trailing stop loss? If yes, calculate your trailing stop loss from your average price. If your percentage of risk is 10 percent, what’s 10 percent below your average price? The answer is the position of your trailing stop loss.

Perhaps, your trailing stop loss, based on this situation, is higher than the current price. If that’s the case, at least, you now know that you should have already cut your losses when the price of NOW was still higher than where it is at the moment. You know better next time.

If this is your case, hold your position for as long as NOW has a bullish Momentum Power Indicator. If you’re a subscriber of Equilyst Analytics, please regularly ask for the status of the Momentum Power Indicator of NOW in our Private Clients Forum so that my team and I can guide you further.

If You Don’t Have NOW Yet

What if you don’t have NOW Corporation yet in your portfolio? Please don’t be a reckless trader. NOW has an extremely high risk level already. If you’re a beginner, you better check other stocks that have a low to moderate risk level. Those are the stocks with a historical volatility score that’s not higher than 70 percent.

I suggest that you follow the Lesson # 1 of my The Evergreen Strategy in Trading and Investing in the Philippine Stock Market seminar to find stocks that fit your risk appetite. Brush up on the handouts I sent you.

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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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