APL Technical Analysis: Is Its Recovery Sustainable or It's Just a Dead Cat Bounce?

Apollo Global Capital, Inc. (APL) Technical Analysis

Apollo Global Capital’s main support is near ₱0.164, while its immediate resistance is near ₱0.243.

So, does APL have a buy signal? Let’s find out with my 6-way test according to my Evergreen Strategy 2.0.

Parameter 1: Is APL’s last price moving above its 10-day simple moving average (SMA)?
Answer: Yes

Parameter 2: Is APL’s moving average convergence divergence (MACD) moving above its signal line?
Answer: No

Parameter 3: Is APL’s last price higher than its volume-weighted average price?
Answer: Yes

Parameter 4: Is APL’s last volume bar higher than 50 percent of its 10-day volume average?
Answer: Yes

Parameter 5: Is APL’s Dominant Range Index bullish?
Answer: No

Dominant Range Index: Bearish
Last Price: ₱0.187
Intraday Low: ₱0.1810
Intraday High: ₱0.1910
VWAP: ₱0.1857
Dominant Range: ₱0.182 – ₱0.187

Parameter 6: Is APL’s Market Sentiment Index bullish?
Answer: No

Market Sentiment Index: BEARISH
19 of the 51 participating brokers, or 37.25% of all participants, registered a positive Net Amount
23 of the 51 participating brokers, or 45.10% of all participants, registered a higher Buying Average than Selling Average
51 Participating Brokers’ Buying Average: ₱0.18541
51 Participating Brokers’ Selling Average: ₱0.18545
9 out of 51 participants, or 17.65% of all participants, registered a 100% BUYING activity
12 out of 51 participants, or 23.53% of all participants, registered a 100% SELLING activity

Synthesis

A stock must get 6 yeses to have a confirmed buy signal based on my Evergreen Strategy 2.0.

Apollo Global Capital, Inc. (APL) failed to snatch a buy signal as of closing on May 20, 2021. So, what should you do if you already have it in your stock portfolio?

You have two options if your trailing stop is still intact. Your first option is to hold your position without topping up. Your second option is to reduce the percentage of risk of your trailing stop since both its Dominant Range and Market Sentiment Indices are bearish. You may use my trailing stop calculator.

If you’re only in the planning stage of doing a test-buy on APL, save your buying power for now. Instead, wait for a confirmed buy signal for a higher chance of success in trading or investing in this stock. There’s also a flowchart in the course manual of Evergreen Strategy 2.0 when looking for a confirmed buy signal. Print it out until such time that you already memorized it by heart. Then, remember to calculate your reward-to-risk ratio once a confirmed buy signal is spotted.

It’s more likely for APL to move sideways or to just trade the range between its immediate support and resistance levels. APL’s Dominant Range Index and Market Sentiment Index are contrarian to what its two consecutive green consecutive candlestick signify. I suggest that you stay in a risk-averse mode.

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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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