Now Corporation (PSE:NOW) is trading at P2.59 per share as of the time of writing this post. Its immediate support is near 1.98 while its immediate resistance is near 2.88. Foreign investors’ participation in the daily trades of NOW is not in a significant level so I am not going to talk that much about foreign fundies in this post. NOW remains bearish on the daily chart, especially in the long-term scale since its last price is still moving below the long-term simple moving average (SMA) – the 200-day SMA.
My 10SMA-MACD combo remains invalid. While the last price is still moving above the 10SMA (2.53), the MACD line is still moving below the signal line.
Those who attended my The Evergreen Strategy in Trading the Philippine Stock Market seminar (advanced seminar for traders and investors) know the significance of this combination of two indicators.
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By the way, I’ll have this seminar tomorrow at Max’s Restaurant Banilad Cebu Branch, 101 & 201 South Arcade Banilad Town Centre Cebu (BTC) , Gov. M. Cuenco Ave. Cebu City. If you’d like to catch up, send an email to seminars@equilyst.com. Today’s the last day of registration.
Here’s what I’ll teach you:
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how to identify the best stocks to trade when you’re busy
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how to identify a confirmed buy-signal
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how to check if the current trend is more likely to continue
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how to identify the price range where it’s best to trade
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how to know the true market sentiment
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how to sell more logically and less emotionally
Over 90 percent of the methods that I will teach you are proprietary. That means you won’t find them on Google. If you can disprove me beyond the shadow of doubt, send your proof via email and I will give you a full refund. Also, if you find this seminar non-sense, just tell me in person right after the seminar and I’ll give you a full refund. Equilyst Analytics is the only one in the Philippines that offers a money-back guarantee in its seminars.
Going back to NOW Corp, it already has a high-risk level with its historical volatility score above 70 percent. For newbie traders, I suggest that you pick liquid stocks that have a historical volatility score that’s lower than 70 percent. These stocks do not register erratic fluctuations (heart-attack fluctuations).
While RSI is still quite distant from its classical overbought level, I do not have a data-driven sentiment yet to say that it’s more likely to pierce its immediate resistance. For one, NOW has been struggling to break above its immediate resistance for four months already.
Trade-Volume Distribution
Last Price: 2.5800
VWAP: 2.6296
Most Traded Prices: 2.65, 2.67, 2.6, 2.61, 2.58
Most Voluminous Prices: 2.65, 2.67, 2.6, 2.61, 2.66
Despite the presence of a red volume bar, the dominant range of NOW as of the timestamp indicated on the chart is closer to the intraday high than the intraday low. The bulls are not yet raising the white flag.
However, the last price is already moving below the volume weighted average price (VWAP). That’s a bearish signal.
This makes my 4-point criteria absent on the chart of NOW. When my 4-point criteria are absent, it’s a sign of a struggling ascent in price.
Are you planning of entering a new position? Think twice.
Those who attended my The Evergreen Strategy in Trading the Philippine Stock Market seminar know what these 4-point criteria are and their significance in planning a trade.
True Market Sentiment
True Market Sentiment of NOW as of Jul-12-2019 at 02:13PM, with a last price of 02.5800.
5 of the top 10 brokers registered a positive Net Amount
3 of the top 10 brokers have a higher Buying Average than Selling Average
True Market Sentiment: Neutral
Top 10 Players’ Buying Average: 2.6327
Top 10 Players’ Selling Average: 2.6373
Bonus Info:
12 out of 34 participants or 35.29% of all participants registered a 100% BUYING activity
5 out of 34 participants or 14.71% of all participants registered a 100% SELLING activity
The majority of the top 10 brokers are not buying the dips. Buyers are still eavesdropping with each other. Perhaps, they’re waiting for someone to buy a significant amount of shares above the VWAP before they follow through.
A neutral True Market Sentiment does not help in building a bullish conviction to top-up or enter a new position on NOW Corp.
Recommendations
If you have NOW and if it’s still trading above your trailing stop loss, I suggest that you hold your position but do not top-up yet. If you’re an Equilyst Analytics subscriber, I highly recommend that you post a request in our Private Clients Forum for the latest Trade-Volume Distribution and True Market Sentiment charts of NOW so I can give you my latest recommendation. Recommendations change when sentiments change.
If you do not have NOW but are planning to enter a new position, I suggest that you postpone that plan until the 10SMA-MACD combo becomes valid again. If you can’t wait for this combo to be re-validated, at least, wait for the 4-point criteria to become present again. Once any of these two become present, please post a request in our Private Clients Forum for the latest Trade-Volume Distribution and True Market Sentiment charts of NOW so I can give you my latest recommendation also. For new entrants, do not forget to calculate your reward-to-risk ratio before positioning your buy entry within the dominant range. That’s one extra process you have to go through if you’re a new entrant in a stock.
By the looks of the price action of NOW between its immediate support and resistance and its DMI chart, it looks like it’ll just trade the range and not register a trend unless it breaks above 2.88 with an outstanding volume that is higher than its 10-day volume average.
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