Global Ferronickel (FNI) Analysis: Buy Now or On Breakout From ₱2.80?

Global Ferronickel Holdings, Inc. (FNI) Technical Analysis

Global Ferronickel Holdings or FNI closed on May 18, 2021 at ₱2.60 per share, up by 4.42 percent. Don’t thank the foreign investors for that. They only registered a net foreign buying worth ₱1.30 million. FNI’s total turnover value today was ₱11.20 million, which is relatively small, still. There’s not much to quote the foreign investors for because of their insignificant daily net foreign amounts since the first week of March 2021. Moreover, FNI has a moderate erraticity level due to its 10-day historical volatility score of 53 percent.

FNI’s immediate support is pegged at ₱2.20, while its immediate resistance is parked near ₱2.80. So now that it’s closer to its resistance than its support, is there a buy signal for FNI already? Let’s find out with my 6-way test according to my Evergreen Strategy 2.0.

Parameter 1: Is FNI’s last price moving above its 10-day simple moving average (SMA)?
Answer: Yes

Parameter 2: Is FNI’s moving average convergence divergence (MACD) moving above its signal line?
Answer: No

Parameter 3: Is FNI’s last price higher than its volume-weighted average price?
Answer: Yes

Parameter 4: Is FNI’s last volume bar higher than 50 percent of its 10-day volume average?
Answer: Yes

Parameter 5: Is FNI’s Dominant Range Index bullish?
Answer: Yes

Dominant Range Index: Bullish
Last Price: ₱2.60
Intraday Low: ₱2.4900
Intraday High: ₱2.6100
VWAP: ₱2.5556
Dominant Range: ₱2.54 – ₱2.60

Parameter 6: Is FNI’s Market Sentiment Index bullish?
Answer: No

Market Sentiment Index: BEARISH
9 of the 25 participating brokers, or 36.00% of all participants, registered a positive Net Amount
7 of the 25 participating brokers, or 28.00% of all participants, registered a higher Buying Average than Selling Average
25 Participating Brokers’ Buying Average: ₱2.54529
25 Participating Brokers’ Selling Average: ₱2.56588
4 out of 25 participants, or 16.00% of all participants, registered a 100% BUYING activity
11 out of 25 participants, or 44.00% of all participants, registered a 100% SELLING activity

Synthesis

Unfortunately, FNI failed to get 6 yeses. It has to get 6 yeses for my Evergreen Strategy 2.0 to issue a confirmed buy signal for any stock.

So, what should you do if you already have FNI in your portfolio?

Hold your position if your trailing stop is still intact. No need to panic. There is no need to reduce the percentage of risk of your trailing stop because its end-of-day Dominant Range Index is still bullish. So hold your position, but do not average down yet.

What should you do if you don’t have FNI yet, but you’re planning to enter a new position?

Have patience. Add FNI to your watchlist if you still have an available slot but do not add it to your portfolio yet. If you’re one of our clients at Equilyst Analytics, make sure that you have already studied the course manual of my Evergreen Strategy 2.0 so you’ll know how to follow the flowchart when looking for a confirmed buy signal. Ask for FNI’s latest Dominant Range Index and Market Sentiment Index in our online discussion group on our website so you can fill in the blanks. Because you’re a subscriber, you should be able to analyze on your own as I do. You can ask me anything about my proprietary strategy in our online discussion group, anyway.

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Jaycee De Guzman

Founder and CEO at Equilyst Analytics

Experience the expertise of Jaycee De Guzman, the brain of Equilyst Analytics, renowned for his unique data analysis. He is a computer scientist and a self-taught digital marketing strategist and agriculturist. Since Equilyst Analytics’ founding in 2012, over 10,000 local and foreign clients have consulted with Jaycee de Guzman on crypto and stock investments.

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