AP Technical Analysis
In this technical analysis for Aboitiz Power Corporation (AP), 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 AP 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: NO
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: NO
Volume-Weighted Average Price (VWAP)
Parameter 4: Is its last price equal or higher than its volume-weighted average price?
Answer: NO
Dominant Range Index (DRI)
Parameter 5: Is its Dominant Range Index bullish?
Answer: NO
Dominant Range Index: BEARISH
Last Price: 29.25
VWAP: 29.56
Dominant Range: 29.5 – 29.5
Market Sentiment Index (MSI)
Parameter 6: Is its Market Sentiment Index bullish?
Answer: YES
Market Sentiment Index: BULLISH
47 of the 70 participating brokers, or 67.14% of all participants, registered a positive Net Amount
49 of the 69 participating brokers, or 71.01% of all participants, registered a higher Buying Average than Selling Average
70 Participating Brokers’ Buying Average: ₱29.60468
70 Participating Brokers’ Selling Average: ₱29.53333
28 out of 70 participants, or 40.00% of all participants, registered a 100% BUYING activity
4 out of 70 participants, or 5.71% of all participants, registered a 100% SELLING activity
Verdict: AP Technical Analysis
There is NO confirmed buy signal because not all six indicators are bullish. This doesn’t mean you should sell if you already have some shares of this stock. Refer to the fourth lesson of our Evergreen Strategy 2.0 for a refresher on what you should do.
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