Sentimental and Technical Analysis for Converge ICT Solutions, Inc. (PSE:CNVRG)
Converge ICT Solutions, Inc. (PSE:CNVRG) has successfully secured its position above the support level at P28.00-apiece this April unless something unprecedented is poised to happen in the last two trading days of April 2022.
The confidence to buy above P31.00 per share is still relatively low as CNVRG continues to move sideways. As of the time of writing, its last price of P29.40 is below the 10-day simple moving average.
The daily volume below the 100% of CNVRG’s 10-day volume average reflects the lackluster confidence to buy at a higher price and the lack of significant interest to sell down significantly. This confirms the ongoing neutral market sentiment.
The immediate resistance is at P36.00 per share. Just in case you’re thinking that your reward-to-risk ratio is very attractive right now, relative to the position of the last price between the immediate support and resistance, think again. It’s imperative to make sure there’s a confirmed buy signal so you’re not buying based on your emotion-based hunch or instinct alone.
Foreign Investors
Foreign fundies are net buyers year-to-date, but their net buying amount is not within a significant level. So, I’m not going to factor-in the influence of the foreign investors in this trade.
Volume
CNVRG’s daily volume is not critical. It’s still above the 50% of the stock’s 10-day volume average. Don’t be alarmed unless the Day Change is negative the last volume bar is above the 100% of CNVRG’s 10-day volume average.
Moving Average Convergence Divergence
By classical interpretation, CNVRG’s moving average convergence divergence (MACD) is bearish.
Still a Newbie-friendly Stock?
CNVRG is still relatively considered as a low-risk stock due to its 10-day historical volatility score of nearly 33%. However, let me remind you that having a low-risk profile is not an indicator to buy right away. It’s just a representation of how erratic the price moves.
Is There a Confirmed Buy Signal?
Let’s look at the ratings of the six indicators that compose my proprietary methodology called The Evergreen Strategy in Trading and Investing in the Philippine Stock Market. If all of them are bullish, there’s a confirmed buy signal.
Once there’s a confirmed buy signal, you need to calculate your reward-to-risk ratio and initial trailing stop. Do a test-buy or top-up on your existing shares if and when you’re satisfied with the ratio.
Parameter 1: Is its last price moving above its 10-day simple moving average (SMA)?
Answer: NO
Parameter 2: Is its last volume bar higher than 50 percent of its 10-day volume average?
Answer: NO
Parameter 3: Is its moving average convergence divergence (MACD) above its signal line?
Answer: NO
Parameter 5: Is its Dominant Range Index bullish?
Answer: Login to your account and ask for the DRI of this stock.
Parameter 6: Is its Market Sentiment Index bullish?
Answer: Login to your account and ask for the DRI of this stock.
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