Philweb Corporation (WEB) closed on July 29, 2019, Monday, at 3.95 per share, down by 3.66 percent. WEB is down by 3.66 percent WTD, up by 8.22 percent MTD, and up by 22.67 percent YTD.
While the three simple moving averages I am using (10, 50, 200) are aligned in a perfect bullish position, know that the last candlestick of WEB is already moving below the 10-day SMA. That signifies bearishness in the short-term.
Support is near 3.84 while resistance is near 4.44. If it does not hold above 3.84, the next support will be near 3.23.
WEB is one of the gaming stocks that is affected by the pronouncement of President Rodrigo Duterte to shutdown the Philippine Charity Sweepstakes Office (PCSO) due to an alleged corruption in the agency.
Last week, WEB closed at 4.10. Today, it hit an intraday low of 3.82. Just like the LOTO, another gaming company, WEB managed to register an intraday rebound from its intraday low of 3.82 to its closing price of 3.95.
I’d also like to emphasize that WEB’s green volume bar today engulfs its daily volume bars since July 5, 2019. Is this a sign that we’ll see WEB above the 4sh level again this week? Let’s check my proprietary indicators to have a data-driven basis for our forecast.
My 10SMACD combo is still invalid. Also, my proprietary Momentum Power Indicator is not bullish. Only 3 of its 4 components are present. With two of my proprietary indicators being invalid and absent, I don’t have the confidence to say that the ascent in price is more likely to continue.
While WEB has a low risk level based on its historical volatility score of 33 percent, the downward momentum is getting stronge. The -DMI is hovering the +DMI, and ADX is only 4 points shy from giving WEB a confirmed strong downward momentum level.
Another sign of the lack of appetite to buy WEB up by a significant level is the foreign investors’ measly Net Foreign Buying that only totaled P1 million today.
Foreign investors are net sellers on WEB YTD.
Trade-Volume Distribution
Last Price: 3.95
VWAP: 3.91908113
Most Traded: 3.95 – 3.9
Most Voluminous: 3.87 – 3.9
The majority of WEB’s trade and volume today were registered closer to the intraday low than the intraday high. Pay close attention to the values of the most traded and most voluminous ranges above. WEB might continue to play actively between those ranges tomorrow unless there’s a positive news concerning PCSO.
True Market Sentiment
True Market Sentiment of WEB as of Jul-29-2019 at 03:30PM, with a last price of 3.9500.
5 of the top 10 brokers registered a positive Net Amount
4 of the top 10 brokers registered a higher Buying Average than Selling Average
True Market Sentiment: BEARISH
Top 10 Players’ Buying Average: 3.9165
Top 10 Players’ Selling Average: 3.9327
Bonus Info:
15 out of 54 participants or 27.78% of all participants registered a 100% BUYING activity
10 out of 54 participants or 18.52% of all participants registered a 100% SELLING activity
The intraday recovery of WEB from its intraday low did not help in boosting the confidence of the top 10 brokers to buy the dips. Their cumulative selling average is also higher than their cumulative buying average. That doesn’t encourage traders to buy the stock at significantly higher price.
Recommendations
If your trailing stop loss (TSL) got hit today, it would have been better if you respected it. If not, I do not suggest topping up. My proprietary indicators support this idea of not buying the dips.
If you are planning to enter a new position on WEB, I also do not suggest doing that. First off, my 10SMACD combo is invalid. Secondly, my Momentum Power Indicator is bearish. Thirdly, I just showed you a bearish true market sentiment, didn’t I? At least, wait for the Momentum Power Indicator to become bullish. But if you’re a relatively newbie trader, it’s better not only to wait for the Momentum Power Indicator to become bullish, but also for the 10SMACD combo to be re-validated.
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