CEB and PAL Technical Analysis: Finding Out Which One's More Investable

Which airline stock will you buy if you choose between Cebu Air (CEB) and PAL Holdings (PAL)?

I’ll do a technical analysis for both stocks to make your decision-making process easier.

In this technical analysis, I will score both stocks regarding the number of bullish indicators they will get.

These are the indicators I will use:

position of the last price relative to its 10-day simple moving average (SMA)
position of the moving average convergence divergence (MACD) relative to the position of the signal line
size of the last volume relative to the size of the 50% of the stock’s 10-day volume average
position of the last price relative to the position of the volume-weighted average price (VWAP)
status of the Dominant Range Index (trade-volume distribution analysis)
status of the Market Sentiment Index (market sentiment analysis)

I’ll start with Cebu Air (CEB).

Cebu Air (CEB) Technical Analysis

Last Price vs. 10-day SMA

CEB closed on June 9, 2023 at P39.60 per share, unchanged from the previous trading day’s closing price.

Support is at P38.70, while resistance is at P44.25. CEB’s last price is closer to immediate support than resistance.

This stock is trading below its 10-day SMA.

CEB gets a bearish score for this criterion.

MACD vs. Signal Line

CEB’s MACD is trading below the signal and zero lines. I do not see a formation of a bullish convergence between the MACD and signal lines.

That’s a bearish point for CEB.

Last Volume Vs. 10-day Volume Average

CEB printed a red volume bar higher than 50% of the stock’s 10-day volume average last June 9, 2023.

Since it’s a red volume bar, CEB gets another bearish score for this criterion.

Last Price vs. VWAP

CEB’s last price of P39.60 is higher than last Friday’s VWAP of P39.56.

Finally, CEB gets a bullish score.

When the last price is higher than the volume-weighted average price (VWAP), it means that the most recent transaction or trade occurred at a price higher than the average price at which all the trades took place throughout the day, weighted by their respective trading volumes.

The VWAP is a commonly used benchmark in trading and represents the average price at which a security has traded over a given period, typically within a day. It considers both the prices at which trades occurred and the volume of shares traded at each price.

If the last price is higher than the VWAP, it suggests that the most recent transaction was executed at a price higher than the average price of all the trades for that day. This could indicate strong buying pressure or a surge in demand for the security, as buyers are willing to pay a premium to acquire the shares.

Dominant Range Index

Dominant Range Index: BULLISH
Last Price: 39.6
VWAP: 39.56
Dominant Range: 39.6 – 39.6

CEB gets its second bullish score.

Market Sentiment Index (June 9, 2023)

Market Sentiment Index: BULLISH
8 of the 11 participating brokers, or 72.73% of all participants, registered a positive Net Amount
7 of the 11 participating brokers, or 63.64% of all participants, registered a higher Buying Average than Selling Average
11 Participating Brokers’ Buying Average: ₱39.56239
11 Participating Brokers’ Selling Average: ₱39.53600
5 out of 11 participants, or 45.45% of all participants, registered a 100% BUYING activity
2 out of 11 participants, or 18.18% of all participants, registered a 100% SELLING activity

This is the third bullish score for CEB.

I’ll take a look at the month-to-date Market Sentiment Index for CEB.

Market Sentiment Index (June 1, 2023 to June 9, 2023)

Market Sentiment Index: BULLISH
26 of the 33 participating brokers, or 78.79% of all participants, registered a positive Net Amount
23 of the 33 participating brokers, or 69.70% of all participants, registered a higher Buying Average than Selling Average
33 Participating Brokers’ Buying Average: ₱40.26681
33 Participating Brokers’ Selling Average: ₱40.32083
14 out of 33 participants, or 42.42% of all participants, registered a 100% BUYING activity
3 out of 33 participants, or 9.09% of all participants, registered a 100% SELLING activity

CEB bags its fourth bullish point.

Final Score for CEB

Bearish: 3
Bullish: 4