Sentimental and Technical Analysis for Global Ferronickel Holdings, Inc. (PSE:FNI)
Global Ferronickel Holdings (FNI) was one of the stocks that soared high amid the pandemic in 2020. However, those who entered a new position at the beginning of 2021, and are still holding that position, are still hoping to see the light at the end of the tunnel as of May 6, 2022.
Since March 2022, the downtrend direction of FNI has been obvious. It broke two support levels since then – P3.15 and P2.80. Today, P2.80 is its immediate resistance, and P2.40 is its immediate support.
While I see three consecutive green candlesticks on the daily chart, I say FNI is still not out of the woods. It’s still trading below the 10-day simple moving average, after all.
If and when FNI breaks below P2.55, which is the golden ratio (61.8%) of the Up Fibonacci I plotted on the chart, it increases the chance of touching the support at P2.40, especially if the descent will be accompanied by a volume higher than the 100% of its 10-day volume average. Watch out for those signs.
Moreover, I’d like to share a portion of the statistics generated by my Market Sentiment Index. These numbers might help you form a data-driven market sentiment.
– 9 of the 18 participating brokers, or 50.00% of all participants, registered a positive Net Amount
– 9 of the 18 participating brokers, or 50.00% of all participants, registered a higher Buying Average than Selling Average
– 18 Participating Brokers’ Buying Average: ₱2.61691
– 18 Participating Brokers’ Selling Average: ₱2.63214
– 5 out of 18 participants, or 27.78% of all participants, registered a 100% BUYING activity
– 6 out of 18 participants, or 33.33% of all participants, registered a 100% SELLING activity
By the looks of these numbers, there’s a tug-of-war between the bulls and bears.
Foreign Investors
The foreign investors have been net buyers for six consecutive trading days. However, not all of those instances registered a relatively significant net foreign buying amount. On the good side of the story, FNI closed each month on a net foreign buying note. FNI is on a net foreign buying stance year-to-date.
Volume
The daily volume of FNI isn’t that bad. Most of its registered daily volume is higher than 50% of the stock’s 10-day volume average.
It would have been better if the buying support of the foreign investors were consistently accompanied by a daily volume preferably higher than the 50% of FNI’s 10-day volume average. It would be much better if higher than 100% of its 10-day volume average.
Moving Average Convergence Divergence
FNI’s moving average convergence divergence (MACD) line shows a glimpse of hope for FNI holders since it started to bend toward the northward direction. However, this is only a formation of a bullish convergence with the signal line. I repeat, this is a formation and not yet a confirmation of a bullish signal. This narrative is a developing story, so monitor MACD, as well.
Still a Newbie-friendly Stock?
FNI still has a moderate erraticity level, being its 10-day historical volatility score remains above 50% but below 70%. This erraticity level means no erratic price actions or relatively alarming price gaps were registered, at least, in the past 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: 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.
Need Help?
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