Sentimental and Technical Analysis for AC Energy Corporation (PSE:ACEN)
AC Energy Corporation (PSE:ACEN) is down by 33.46% year-to-date from last year’s closing price of P11.00 per share to the current price of P7.32. Last April 2022, ACEN made an attempt to break above the previous resistance at P9.00 per share only to be met by traders who chose to “sell on strength” to trim their losses. Presently, ACEN’s immediate support is near P6.80 with an immediate resistance near P7.80. ACEN is likely to dig deeper until sellers reach the exhaustion level.
On the other hand, I see some interests in buying the dips among the top 10 trading participants as seen in my intraday market sentiment index.
36 of the 61 participating brokers, or 59.02% of all participants, registered a positive Net Amount
33 of the 61 participating brokers, or 54.10% of all participants, registered a higher Buying Average than Selling Average
61 Participating Brokers’ Buying Average: ₱7.36462
61 Participating Brokers’ Selling Average: ₱7.36912
19 out of 61 participants, or 31.15% of all participants, registered a 100% BUYING activity
9 out of 61 participants, or 14.75% of all participants, registered a 100% SELLING activity
If this bullish intraday market sentiment will be accompanied by a green volume bar higher than the 100% of ACEN’s 10-day volume average, then, my previous bearish sentiment will be superseded by the bullish market sentiment. This is a developing story that requires monitoring, however.
Foreign Investors
Foreign investors are not interested to buy the dips. Last Friday, they registered a nearly P60 million net foreign selling. They’ve been on a net foreign selling status 7 days in a row (including the intraday net foreign selling worth P4.3 million). Foreign investors are net buyers year-to-date, however.
Volume
ACEN has no volume-related issue. Most days are higher than 50% of the stock’s 10-day volume average. When the downtrending price is accompanied by a volume lower than 50% of the stock’s 10-day volume average, it could be a sign that the bearish sentiment might be reversed soon.
Moving Average Convergence Divergence
ACEN’s MACD is still bearish. No signs of any formation of a bullish divergence between the MACD and signal lines.
Still a Newbie-friendly Stock?
ACEN already has a moderate erraticity level. It’s about to enter the high erraticity level. This is not a newbie-friendly stock anymore as soon as it crosses 70% of its 10-day historical volatility score.
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: YES
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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