ABS-CBN Corporation (ABS) Analysis
\After advancing by 49.86 percent on Monday, ABS-CBN Corporation (ABS) plummeted by 14.93 percent at ₱9.00 per share as of Tuesday, October 6, 2020. ABS printed a total turnover value worth ₱123.59 million.
Expect zero participation from foreign investors because they’re not allowed to trade publicly-listed media companies in the Philippines.
Now that ABS-CBN retreated below its previous support at ₱10.15, this price point is now its immediate resistance, while its immediate support lies near ₱6.74. ABS-CBN is back to the price range where it has been for nearly three months.
Today’s red volume bar is higher than the 100 percent of this media company’s 10-day volume average. That’s proof that today’s traders were very driven to lock-in profits.
Last Monday, the sudden spike of price made ABS-CBN an extremely high-risk stock based on its 10-day historical volatility score of nearly 260 percent. The risk level I’m referring to is about the erraticity of the movement of price and not about your risk tolerance.
Even if MACD and DMI are both bullish by classical interpretation, I won’t take that as a confirmed buy signal. For this reason, I do not base my decision on one indicator alone (and you should, too). The 10SMACD and Momentum Power Indicator of a stock must have a bullish rating for us to have a confirmed buy signal here at Equilyst Analytics. Please review our online stock market course (if you’re one of our clients) to know the 10SMACD and Momentum Power Indicator elements.
Trade-Volume Distribution Analysis
Last Price: ₱9.00
VWAP: ₱11.14
Dominant Range: ₱9.00 – ₱9.00
It’s a bearish signal when the last price is lower than the volume-weighted average price (VWAP) of a stock, which is the case of ABS-CBN. Moreover, the dominant price is closer to the intraday low than the intraday high. There’s another dominant price, which is closer to the intraday high than the intraday low, which is ₱12.00 per share. Don’t keep your hope too high because there’s no strong signal of recovery near ₱12.00.
Based on my analysis, the 10SMACD and Momentum Power Indicator of ABS-CBN are bearish. This synthesis means there’s no confirmed buy signal for ABS-CBN.
True Market Sentiment – EOD (October 6, 2020)
True Market Sentiment: BEARISH
3 of the top 10 brokers registered a positive Net Amount
4 of the top 10 brokers registered a higher Buying Average than Selling Average
Top 10 Players’ Buying Average: ₱11.1459
Top 10 Players’ Selling Average: ₱11.3189
11 out of 68 participants or 16.18% of all participants registered a 100% BUYING activity
6 out of 68 participants or 8.82% of all participants registered a 100% SELLING activity
True Market Sentiment – WTD (October 5-6, 2020)
True Market Sentiment: BEARISH
4 of the top 10 brokers registered a positive Net Amount
4 of the top 10 brokers registered a higher Buying Average than Selling Average
Top 10 Players’ Buying Average: ₱10.6436
Top 10 Players’ Selling Average: ₱10.8205
9 out of 75 participants or 12.00% of all participants registered a 100% BUYING activity
9 out of 75 participants or 12.00% of all participants registered a 100% SELLING activity
True Market Sentiment – MTD (October 1-6, 2020)
True Market Sentiment: BEARISH
4 of the top 10 brokers registered a positive Net Amount
4 of the top 10 brokers registered a higher Buying Average than Selling Average
Top 10 Players’ Buying Average: ₱10.5034
Top 10 Players’ Selling Average: ₱10.6842
9 out of 77 participants or 11.69% of all participants registered a 100% BUYING activity
10 out of 77 participants or 12.99% of all participants registered a 100% SELLING activity
The ultimate True Market Sentiment rating across the three timeframes is bearish. This means the downtrend is more likely to continue.
Recommendations
Is your trailing stop still intact? If your answer is affirmative, you may hold your position if you’re a high-risk investor. Lock-in your profits if you’re a low-risk investor. Regardless of whether you’re a high-risk or low-risk investor, you shouldn’t buy more shares yet if you don’t want to waste your buying power.
If you do not have ABS-CBN in your portfolio, do not do a test-buy yet unless and until the 10SMACD combo and Momentum Power Indicator of this stock are both bullish. If you’re one of our clients, you may request our latest ABS-CBN analysis in our Private Clients Forum.
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