Vitarich Corporation: Sell Between 1.98 and 2.37 or Use a Trailing Stop Loss Instead?

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Vitarich Corporation (VITA) found its psychological bottom between 1.35 and 1.40. It successfully broke the resistance at 1.57 last week. Now, it’s 10 ticks away from the new resistance at 1.98.

VITA has returned to its bullish state on a short-term time period when the shorter-term SMA (10) crossed above the longer-term SMA (20) last week. I’d like to see VITA cross above the next resistance at 2.37 before I could say that it’s back on its long-term bullish position.

MACD remains bullish as it moves above the signal and zero lines. RSI is a few points away before entering the classical overbought territory. On the other hand, Stochastic is already faring inside the overbought zone.

However, I snub all these classical interruptions overbought-oversold interpretations for RSI and Stochastic.

I use a trailing stop loss. As long as the price is moving above my trailing stop loss, I can either hold my position or buy more shares.

If and when the price touches my trailing stop loss, it’s time to sell. Trading should not be stressful. I know it’s easier said than done for a newbie. After all, it took me 18 years to reach this level of confidence on stock trading and investing.

Foreign Fund Flow

VITA registered a Net Foreign Buying worth P1,101,670.00 as of December 03, 2018.

On a 30-day trading period, VITA is on a Net Foreign Selling worth PHP15,497,971.00.

Why do I like to use my Foreign Fund Flow chart?

  • This chart helps us see if foreign investors are significantly buying or selling the stock.
  • It helps us see if the foreign investors are net buyers or net sellers within the chosen time period (e.g. 30 days, 60 days, 90 days).
  • This chart helps us see if foreign investors are contrarian to the current sentiment toward the stock. For example, we can see if foreign investors are aggressively buying the stock even if the stock’s current Day Change is negative and vice versa.

Volume

As of December 3, 2018, at 03:30PM, the volume of VITA is 68.35% of the previous trading day. This stock’s latest volume is already above its 30-day volume average.

Remember the correlation between price and volume.

  • bullish price + volume above the 30-day volume average = bullish
  • bullish price + volume below the 30-day volume average = neutral
  • bearish price + volume above the 30-day volume average = bearish
  • bearish price + volume below the 30-day volume average = bearish

Risk Level

VITA has a MODERATE RISK level due to its risk percentage of 64.90%.

Top 10 Players EOD

Trading participants of VITA with a 100% Buying and Selling Activity as of Dec-03-2018 at 03:30PM:
7 out of 40 participants or 17.50% of all participants registered a 100% BUYING activity
10 out of 40 participants or 25.00% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 1.7970
Top 10 Players’ Selling Average: 1.7991
The psychological average price of the top 10 players as of Dec-03-2018 at 03:30PM is from 1.7970 to 1.7991.

Why do I like to use my Top 10 Players chart?

  • It helps us see if the top 10 brokers of the stock are buying the dips, selling the rips, or moving sideways.
  • It ranks all of the brokers who have traded the stock as of the time of checking/
  • It tells us the buying and selling average of each of the top 10 players of the stock on a real-time basis.
  • It tells us the psychological average price of the top 10 players of the stock.
  • It tells us the buying average and selling average of each of the top 10 players.
  • It tells us the cumulative buying average and cumulative selling average of the top 10 players.

Price-Volume Distribution

VWAP: 1.7995
Top 5 Prices (Biggest Trades): 1.85, 1.81, 1.8, 1.86, 1.82
Top 5 Prices (Biggest Volume): 1.85, 1.8, 1.81, 1.88, 1.84

Why do I like to use my Price-Volume Distribution chart?

  • It helps us identify reversals, divergences, or false breakouts.
  • It shows at a glance the prices that got the biggest volume with the highest number of trades.
  • It helps us see if the majority of the volume is registered near the intraday high, intraday low, or median. The price bar at the top of the chart represents the intraday high. The price bar at the bottom represents the intraday low.
  • It gives us a clue if cross trades happened at a certain price.
  • This chart helps us decide where we should place our buying or selling price because we can see the prices that got the biggest volume with the highest number of trades at a glance.

Recommendation

If you were able to enter a new position on VITA before the surge in price, just follow your trailing stop loss and you should be fine. It’s either you buy more or hold your current position. This concept of a trailing stop loss is the first rule at Equilyst Analytics. I even wrote a newsletter in Filipino (Tagalog) where I explained this concept with examples. If you’re a subscriber of EquiPicks, you’ll find it on Newsletter Vol 1 No 13.

If you don’t have VITA yet and you’re thinking whether you’ll enter a new position or not, you need to consider the risk level of this stock. If you’re a newbie trader, stick with low-risk stocks for now. If you’re a high-risk trader and your capacity to handle high-risk stocks is gained through experience and skills, I suggest that you buy in tranches and be strict with your trailing stop loss.

You can use the VWAP, Top 5 Prices (Volume), Top 5 Prices (Trades), Top 10 Players’ Buying Average, and Top 10 Players’ Selling Average as candidates for a buying or selling price. If you’re one of our subscribers at EquiPicks, I strongly recommend that you read the updated Quick Start Guide. I have explained in detail how to use these price points as your buying and selling prices.

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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