Sentimental and Technical Analysis for Semirara Mining and Power Corporation (PSE:SCC)
Semirara Mining and Power Corporation (PSE:SCC) continues to try to protect its support at P27.00 per share as of trading on May 2, 2022. The immediate resistance is pegged near P34.00 apiece.
SCC is up by 29.74% year-to-date from its 2021’s closing price of P21.35 to its current price of P27.70. However, those who entered during its intra-year peak near the resistance have a different feeling than those who entered their first position during the first quarter of this year.
This lackluster movement of SCC is likely to continue until it breaks above its 10-day simple moving average between P28.80 and P29.00 per share. To make that bullish sentiment more sustainable, I prefer that breakout be accompanied by a volume higher than 100% of SCC’s 10-day volume average.
As of this time of writing, Semirara’s volume-weighted average price of P27.50 is still lower than its prevailing price of P27.00, which is a good signal as far as my proprietary methodology in looking for a confirmed buy signal is concerned. However, be informed that that’s not the only indicator I look into.
Here are some additional pieces of information you may find helpful:
10 of the 20 participating brokers, or 50.00% of all participants, registered a positive Net Amount
10 of the 20 participating brokers, or 50.00% of all participants, registered a higher Buying Average than Selling Average
20 Participating Brokers’ Buying Average: ₱27.33758
20 Participating Brokers’ Selling Average: ₱27.39575
8 out of 20 participants, or 40.00% of all participants, registered a 100% BUYING activity
8 out of 20 participants, or 40.00% of all participants, registered a 100% SELLING activity
Foreign Investors
Foreign investors are already on their 8th straight day of net foreign selling. As of this time of writing, they’re on a net foreign buying status but only at a measly amount of nearly P90,000.00. We are likely to see yet another net foreign selling number by the end of the trading day. But that’s subject to change when sentiments change.
Volume
Traders and investors still got the appetite to trade Semirara since the stock’s daily volume is still higher than the 50% of its 10-day volume average with the exemption of the prevailing volume as of the time of writing this report. If the volume doesn’t climb up higher than the 50% of SCC’s 10-day volume average, the price will likely continue moving sideways.
Moving Average Convergence Divergence
MACD’s giving us a bearish rating by its classical interpretation. We need to see a breakout above the 10-SMA to see a bullish convergence between the MACD and signal lines.
Still a Newbie-friendly Stock?
Yes, Semirara is still classified as a newbie-friendly stock due to its 10-day historical volatility score of 47.38% as of the time of writing. However, having a low erraticity level is not a signal to buy the stock on the spot. It’s just a barometer that measures the erraticity of the price action, at least, for the last 10 trading days.
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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