AC Technical Analysis (10.26.2021): Is Ayala Corp. a Good Stock to Buy?

AC Technical Analysis

In this technical analysis for Ayala Corporation (AC), I’ll show you the status of the six (6) indicators I monitor to know if the stock has a confirmed buy signal. If all six indicators are bullish, it means the stock has a confirmed buy signal according to my proprietary methodology.

I don’t follow the classical usage of technical indicators. I have my proprietary methodology in using certain technical indicators, which I call The Evergreen Strategy 2.0.

Getting a confirmed buy signal does not mean buying the stock right away. I must compute for my initial trailing stop and reward-to-risk ratio first.

The computation of my reward-to-risk ratio follows after computing for my initial trailing stop. I need to decide for the percentage of risk I’m willing to apply in that particular trade. This process must be done sequentially. To compute my reward-to-risk ratio, I need to identify the stock’s resistance.

For your convenience, I created the Trailing Stop Calculator and Reward-to-Risk Ratio Calculator, which you’ll find in the Calculators tab of the Library section of our website.

This AC technical analysis gives you a sneak preview of my thought process in making a data-driven trade and investment decision. Subscribe to our stock market consultancy service to learn my entire methodology.

Let’s take a look at the ratings of the six indicators.

Price vs. 10-day Simple Moving Average (SMA)

Parameter 1: Is its last price moving above its 10-day simple moving average (SMA)?
Answer: YES

Volume

Parameter 3: Is its last volume bar higher than 50 percent of its 10-day volume average?
Answer: YES

Moving Average Convergence Divergence (MACD) vs. Signal Line

Parameter 2: Is its moving average convergence divergence (MACD) moving above its signal line?
Answer: YES

Volume-Weighted Average Price (VWAP)

Parameter 4: Is its last price equal or higher than its volume-weighted average price?
Answer: YES

Dominant Range Index (DRI)

Parameter 5: Is its Dominant Range Index bullish?
Answer: YES

Dominant Range Index: BULLISH
Last Price: 870
VWAP: 864.69
Dominant Range: 862 – 870

Market Sentiment Index (MSI)

Parameter 6: Is its Market Sentiment Index bullish?
Answer: YES

Market Sentiment Index: BEARISH
13 of the 45 participating brokers, or 28.89% of all participants, registered a positive Net Amount
12 of the 44 participating brokers, or 27.27% of all participants, registered a higher Buying Average than Selling Average
45 Participating Brokers’ Buying Average: ₱862.65458
45 Participating Brokers’ Selling Average: ₱863.60331
3 out of 45 participants, or 6.67% of all participants, registered a 100% BUYING activity
21 out of 45 participants, or 46.67% of all participants, registered a 100% SELLING activity

Verdict: AC Technical Analysis

YES, there is a confirmed buy signal because all six indicators are bullish. This doesn’t mean you should buy right away. You need to compute for the things I mentioned above. Review the third lesson of our Evergreen Strategy 2.0 for a refresher.

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Jaycee De Guzman

Founder and CEO at Equilyst Analytics

Experience the expertise of Jaycee De Guzman, the brain of Equilyst Analytics, renowned for his unique data analysis. He is a computer scientist and a self-taught digital marketing strategist and agriculturist. Since Equilyst Analytics’ founding in 2012, over 10,000 local and foreign clients have consulted with Jaycee de Guzman on crypto and stock investments.

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