Metro Alliance Holdings & Equities Corp. (MAH) Analysis
The price of Metro Alliance Holdings & Equities Corp. (MAH) went up on September 23, 2020 by 3.94 percent at ₱2.11 per share. MAH’s total turnover value was at ₱31 million. That was a relatively sizable volume, which resulted in registering a volume bar that exceeded the 100 percent of MAH’s 10-day volume average.
Despite that sizable volume, there’s not much to celebrate about it because Metro Alliance Holdings failed to close at a price higher than its opening price of ₱2.15. As a result, the last candlestick is red, as well as the last volume bar. This shows that the selling pressure was the dominant force on Wednesday.
The immediate support of Metro Alliance Holdings is near ₱1.84, while its immediate resistance is near ₱2.35. There was an attempt to break above the resistance, but the selling pressure pulled back the price within the said support-resistance range. The “sell near resistance” was the mantra on Wednesday.
Don’t look for a foreign activity on Metro Alliance Holdings because foreign investors are not trading it.
While the MACD and +DMI remain bullish and have no visible signs of a formation of a bearish convergence with the signal line and -DMI, respectively, you have to be cautious of your next move because Metro Alliance Holdings is an extremely high-risk stock due to its historical volatility score of 151.35 percent.
I’m referring to the erraticity of the price action of this stock. You can see on my daily chart that Metro Alliance Holdings registered several tall candlesticks that completely engulfed the previous candlestick.
Expect the stock to get high- to extremely high-risk level (erraticity-wise) when it rampantly behaves that way, which is the case of Metro Alliance Holdings.
You should start with low- to moderate-risk stocks (stocks with a 10-day historical volatility not higher than 70 percent) if you’re a new trader or investor.
Trade-Volume Distribution Analysis
Last Price: ₱2.11
VWAP: ₱2.22
Dominant Range: ₱2.15 – ₱2.20
Even if Metro Alliance Holdings’ dominant range is closer to the intraday high than the intraday low, it’s not a good sign when the last price is lower than the volume-weighted average price (VWAP) of the stock, which is the case of Metro Alliance Holdings.
Because of this, the 10SMACD combo and Momentum Power Indicator of Metro Alliance Holdings are both bearish. When either of these two of my proprietary indicators is bearish, that means the stock has no confirmed buy signal yet.
My 10SMACD combo and Momentum Power Indicator have two (2) and four (4) elements, respectively. You can listen to my in-depth explanation, with examples, on the online stock market course of Equilyst Analytics, which is available in Tagalog and English.
True Market Sentiment – EOD (September 23, 2020)
True Market Sentiment: NEUTRAL
1 of the top 10 brokers registered a positive Net Amount
6 of the top 10 brokers registered a higher Buying Average than Selling Average
Top 10 Players’ Buying Average: ₱2.2103
Top 10 Players’ Selling Average: ₱2.2189
6 out of 35 participants or 17.14% of all participants registered a 100% BUYING activity
2 out of 35 participants or 5.71% of all participants registered a 100% SELLING activity
True Market Sentiment – WTD (September 21-23, 2020)
True Market Sentiment: BEARISH
4 of the top 10 brokers registered a positive Net Amount
3 of the top 10 brokers registered a higher Buying Average than Selling Average
Top 10 Players’ Buying Average: ₱2.0995
Top 10 Players’ Selling Average: ₱2.1174
6 out of 40 participants or 15.00% of all participants registered a 100% BUYING activity
4 out of 40 participants or 10.00% of all participants registered a 100% SELLING activity
True Market Sentiment – MTD (September 1-23, 2020)
True Market Sentiment: BEARISH
2 of the top 10 brokers registered a positive Net Amount
4 of the top 10 brokers registered a higher Buying Average than Selling Average
Top 10 Players’ Buying Average: ₱2.0074
Top 10 Players’ Selling Average: ₱2.0135
4 out of 48 participants or 8.33% of all participants registered a 100% BUYING activity
4 out of 48 participants or 8.33% of all participants registered a 100% SELLING activity
The overall True Market Sentiment for MAH, across three timeframes, is bearish. This data-driven assessment validates the selling mantra that dominated the traders and investors on Wednesday when MAH approached the resistance at ₱2.35.
This bearish overall True Market Sentiment seconds the motion for the lack of a confirmed buy signal for MAH, too.
Recommendations
Hold your position or sell in tranches if you still have Metro Alliance Holdings and if your trailing stop remains intact. It’s up to you if you only want to hold your position without raking in some profits because your trailing stop is intact, anyway. The bottom line is that you should not top up or buy more shares due to the absence of a confirmed buy signal. Wait for the 10SMACD combo and Momentum Power Indicator to become bullish before you buy more shares. If you’re one of our clients, you may post a request for our latest analysis on Metro Alliance Holdings in our Private Clients Forum as trading happens.
On the other hand, do not do a test-buy on Metro Alliance Holdings if you don’t have it yet. Do not hurry. At this point, the potential risk is significantly higher than the potential reward. It’s not worth the risk yet, at least, as far as my risk tolerance and strategy are concerned. You may add it in your Watchlist if you’re interested in this stock, but don’t add it yet in your portfolio. Wait for a confirmed buy signal. Once there’s a confirmed buy signal, ask for our latest trade-volume distribution analysis in our Private Clients Forum so we can give you the dominant range where it is most logical to do a test-buy.
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