Ayala Corporation (AC) Technical Analysis
Ayala Corporation (PSE:AC) closed above its 10-day simple moving average (SMA) on May 29, 2023 at P692.00 per share, up by 0.87%.
Investors keep their hopes up to see a breakout above the immediate resistance at P700 per share. Support is near P641 per share, confluent with the 61.8% retracement of the Up Fibonacci.
I don’t see any pressing concerns on the daily of Ayala Corporation. Thanks to it being an index stock!
It’s been almost four months since it’s traded below P700-apiece, possibly influenced by the selling spree of foreign investors from February up to the third week of March 2023. The foreign investors’ daily net foreign buying stance since the second week of May 2023 is unnoticeable. Ayala Corporation registered a net foreign buying worth P44 million today.
On the other hand, I see the formation of a bearish convergence between the MACD and the signal lines. Is this a prelude to what will happen, especially when the price draws closer to its immediate resistance? Monitor closely!
Ayala Corporation doesn’t exhibit erratic movements. So, I am not expecting it to show me a 10-day historical volatility score that will put it above the low-risk erraticity level. That remains true as of today’s closing.
Trade and Volume Analysis
Dominant Range Index: BULLISH
Last Price: 692
VWAP: 691.86
Dominant Range: 692 – 692
Market Sentiment Analysis
Market Sentiment Index: BEARISH
14 of the 37 participating brokers, or 37.84% of all participants, registered a positive Net Amount
13 of the 37 participating brokers, or 35.14% of all participants, registered a higher Buying Average than Selling Average
37 Participating Brokers’ Buying Average: ₱691.60425
37 Participating Brokers’ Selling Average: ₱691.94999
7 out of 37 participants, or 18.92% of all participants, registered a 100% BUYING activity
11 out of 37 participants, or 29.73% of all participants, registered a 100% SELLING activity
What to Do Next?
While five of my Evergreen Strategy indicators raised a bullish signal, Ayala Corporation’s Market Sentiment Index acted as a contrarian today.
That is a fair warning for what historically and usually happens every time the price inches closer to its immediate resistance area.
I am not saying that the majority will surely sell near P700.00, but you know what I’m talking about if you’ve been trading actively for more than a decade. Those who understand are in eavesdropping mode with the other investors of Ayala Corporation. That’s what the bearish Market Sentiment Index means.
If Ayala Corporation gets another bearish Market Sentiment Index for the next one to two trading days, you may want to consider reducing the percentage of risk applied to your trailing stop. Sell if your recomputed trailing stop is below the current price of Ayala Corporation; otherwise, hold your position and sell once your trailing stop is hit.
Do not top up yet. I don’t find it smart and logical to buy the dips since there’s a data-driven warning for me to believe and think that the upward momentum is not that crazy strong to break the glass above P700.00 as of today’s closing.
But, still, sentiments change when things change. You have to be a dynamic decision-maker. Always refer to the prevailing data. Don’t force the market to respect yesterday’s data synthesis.
Would you like to learn my strategy? Please take a look at my services here.
- Key Prices for PH Bluechip Stocks 30% Above 52-Week Low - June 4, 2024
- May 2024 Market Sentiment Rating of 30 PH Bluechip Stocks - June 3, 2024
- EquiTalks: ICT, BPI, AEV Updates – 5.29.2024 - May 29, 2024
