TEL Technical Analysis: When Should You Trade PLDT?

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TEL Technical Analysis: When Should You Trade PLDT?

PLDT, Inc. (TEL) closed at 1,095.00 per share, down by 0.4545 percent, as of 12 noon on October 4, 2019, Friday. The total turnover value is at P21,236,365.

PLDT (TEL) - Daily Chart 1 - 10.4.2019

Foreign investors registered a Net Foreign Selling worth P17 million. They remain as net buyers of TEL year-to-date, but that’s because of the Net Foreign Buying amounts they registered last April and May.

TEL has been in a downtrend channel since the second quarter of 2014.

The immediate support is at 1027 while the immediate resistance is at 1102. Yes, TEL just broke below the previous support, which is now acting as its immediate resistance.

My 10SMACD combo is invalid. All four elements of my Momentum Power Indicators are bearish.

The risk level of TEL is low, but don’t take this as a signal to average down. Averaging down or entering a new position on TEL right now is a bad timing.

Trade-Volume Distribution

Last Price: 1,095.00
VWAP: 1094.940191
Most Traded: 1095 – 1094
Most Voluminous: 1094 – 1095

PLDT (TEL) - Trade Volume Distribution 1 - 10.4.2019

Even if the last price is still higher than the Volume Weighted Average Price (VWAP), the last candlestick is red, the last volume bar is red and is less than the 50 percent of TEL’s 10-day volume average, and the dominant range is closer to the intraday low than the intraday high. This makes a bearish Momentum Power Indicator. It means the descent in price is still more likely to continue.

True Market Sentiment

True Market Sentiment of TEL as of Oct-04-2019 at 12:00PM, with a last price of 1095.00.
6 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: 1095.2955
Top 10 Players’ Selling Average: 1095.1999
Bonus Info:
20 out of 32 participants or 62.50% of all participants registered a 100% BUYING activity
3 out of 32 participants or 9.38% of all participants registered a 100% SELLING activity

PLDT (TEL) - True Market Sentiment 1 - 10.4.2019

This neutral mood of the top 10 brokers shows that they still lack interest in buying the dips of TEL. The current price of TEL is not the attractive yet, in general.

So, if these deep-pocketed top 10 brokers show no interest to buy the dips, why should retail traders like most of us should act as contrarian?

Recommendations

If you still have TEL, one thing’s clear: you need to learn how to love yourself more. 🙂

On a serious note, if you have it for short-term trading purposes only and if your trailing stop has not been hit yet, I recommend that reduce the percentage of risk applied in your trailing stop. Then, you recalculate your trailing stop. Do not average down. Do not add more shares yet. Don’t fool yourself by saying, “TEL is too cheap to ignore.” I’m telling you, it could get cheaper than this.

If you don’t have TEL, you’re in a better position. Entertain the idea of doing a test-buy on TEL once the 10SMACD combo becomes valid and once the Momentum Power Indicator becomes bullish again.

It’s best if you have access in our Private Clients Forum so you can ask for our latest newbie-friendly analysis. We’ll tell you if we already see confirmed technical buy signals then.

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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