Premiere Horizon Alliance Corp (PHA): Buy Now or Wait Near P0.84?

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Premiere Horizon Alliance Corp (PHA): Buy Now or Wait Near P0.84?

PHA Technical Analysis

Premiere Horizon Alliance Corporation (PSE:PHA) closed with an impressive 8.42 percent gain on August 3, 2021, matched by a total turnover value worth P14.87 million. However, the net foreign buying was nowhere near appealing at P1.59 million.

PHA has been staying in the downtrend channel since the pandemic outbreak in the Philippines in March 2020. Despite today’s positive Day Change, it’s still not out of the woods. PHA is still trading below its 10-day simple moving average. Also, its MACD is still trading below the signal line, and I see no formation of a bullish convergence between the two lines.

Premiere Horizon Alliance Corporation (PHA) Analysis - Daily Chart EOD - 8.3.2021

I don’t see a pressing concern on its daily volume since it’s almost always higher than the 50 percent of PHA’s 10-day volume average on most days. However, I regard PHA as an extremely high-risk stock already due to its 10-day historical volatility of over 100 percent.

Even though the foreign investors have shown buying figures in the last two to three weeks, their net foreign buying amounts are insignificant. I’m going to factor out the foreign investors’ sentiment in this case.

Even if the Dominant Range Index and Market Sentiment Index scores of PHA are both bullish, these are only two of the six parameters I’m checking. Two of the six parameters are bearish. Refer to the charts and statistics below for more details.

Dominant Range Index: BULLISH
Last Price: 1.03
VWAP: 0.98
Dominant Range: 1.03 – 1.03

Premiere Horizon Alliance Corporation (PHA) Analysis - Dominant Range Index EOD - 8.3.2021

Market Sentiment Index: BULLISH
19 of the 40 participating brokers, or 47.50% of all participants, registered a positive Net Amount
22 of the 39 participating brokers, or 56.41% of all participants, registered a higher Buying Average than Selling Average
40 Participating Brokers’ Buying Average: ₱0.97377
40 Participating Brokers’ Selling Average: ₱0.98894
14 out of 40 participants, or 35.00% of all participants, registered a 100% BUYING activity
7 out of 40 participants, or 17.50% of all participants, registered a 100% SELLING activity

Premiere Horizon Alliance Corporation (PHA) Analysis - Market Sentiment Index EOD - 8.3.2021

Verdict

My data-driven bias is on the side of the bears. PHA is poised to test the support at P0.84. The immediate resistance is near P1.20. Please refer to the chart below if you want to see PHA’s higher support and lower resistance levels.

Recommendations

Do you already have PHA in your portfolio? If yes, is your trailing stop still intact? If your answer is affirmative, I got two options for you.
Option A: Hold your position. Don’t buy more shares yet unless and until there’s a confirmed buy signal.
Option B: Reduce the percentage of risk applied on your trailing stop. Sell if your revised trailing stop is hit after the adjustment; otherwise, hold your position.

On the other hand, postpone your plan to enter a new position if you don’t have PHA in your portfolio yet.

By the way, I am planning to make myself available on all Saturdays of September 2021 for a whole-day, 1-on-1 training and mentoring session for those who are interested.

Here are the available slots as of the time of writing this analysis:
September 4 (9am-5pm)
September 11 (9am-5pm)
September 18 (9am-5pm)
September 25 (9am-5pm)

What you’ll get:
1. 1-on-1 training on my Evergreen Strategy in Trading and Investing in the Philippine Stock Market version 2
2. portfolio rehabilitation plan (if you have an existing stock portfolio)
Note: We will spend the whole day on the Evergreen Strategy training if you don’t have an existing portfolio yet.

Interested? You can contact me thru the CONTACT page of my website.

Jaycee De Guzman

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