Ayala Land, Inc. (ALI) advanced by 0.92 percent to ₱32.80 today, Thursday, August 6, 2020, with a total turnover value worth ₱262 million. Foreign investors are the main drivers of the price action today.
If you still remember, foreign investors registered a Net Foreign Buying (NFB) worth ₱187 million last Wednesday. Unfortunately, they failed to sustain their NFB today. They recorded a Net Foreign Selling worth ₱50.50 million. They are still net sellers year-to-date, as well.
Ayala Land is still trading between ₱29.00 and ₱33.30, which are the support and resistance levels, respectively. If and when ALI breaks out above the resistance at ₱33.30, the next resistance will be near ₱38.00.
Ayala Land has a low-risk level due to its historical volatility score of 55.85 percent. A low-risk level means the fluctuation rate (erraticity) of ALI’s price isn’t erratic. In my words, I say that low to moderate-risk stocks are newbie-friendly stocks. Don’t mistake this for a buy signal, however. Watch the online stock market course of Equilyst Analytics to know what parameters I check to identify if there’s a confirmed buy signal already.
I also see a formation of a bullish convergence between the -DMI and +DMI. This formation is more likely to become a confirmation once the price breaks out above the resistance at ₱33.30.
Trade-Volume Distribution Analysis
Last Price: ₱32.80
VWAP: ₱32.5744
Dominant Range: ₱32.80 – ₱32.80
It’s a bullish signal for me when the last price is higher than the volume-weighted average price (VWAP). It’s also a bullish signal for me when the dominant range is closer to the intraday high than the intraday low. Today, the dominant range is not only closer to the intraday, but it’s the intraday high itself. However, watch out for the secondary dominant range between ₱32.50 and ₱32.60 should the price of ALI play below ₱32.80 in the first 5 to 15 minutes of the next trading day.
Ayala Land’s 10SMACD and Momentum Power Indicator are both bullish. This means ALI has a confirmed buy signal. Does this mean I find it logical to buy shares of ALI right away? Don’t be quick to think that way. Continue reading.
The two elements of my 10SMACD combo and the four elements of my Momentum Power Indicator are discussed in our online stock market course. You will get your access to this online stock market (available in Taglish and English) when you avail of the stock market consultancy service of Equilyst Analytics.
Trade-Volume Distribution – End-of-Day (EOD)
True Market Sentiment: NEUTRAL
4 of the top 10 brokers registered a positive Net Amount
8 of the top 10 brokers registered a higher Buying Average than Selling Average
Top 10 Players’ Buying Average: ₱32.6114
Top 10 Players’ Selling Average: ₱32.5805
Bonus Info:
11 out of 40 participants or 27.50% of all participants registered a 100% BUYING activity
3 out of 40 participants or 7.50% of all participants registered a 100% SELLING activity
Trade-Volume Distribution – Week-to-Date (WTD)
True Market Sentiment: BEARISH
4 of the top 10 brokers registered a positive Net Amount
3 of the top 10 brokers registered a higher Buying Average than Selling Average
Top 10 Players’ Buying Average: ₱32.0908
Top 10 Players’ Selling Average: ₱32.0993
Bonus Info:
13 out of 78 participants or 16.67% of all participants registered a 100% BUYING activity
5 out of 78 participants or 6.41% of all participants registered a 100% SELLING activity
About five of these top ten players today and week-to-date are foreign brokers. CLSA Philippines, UBS Securities, and JP Morgan are the top three net sellers week-to-date. If these three brokers become net sellers again on Friday, Ayala Land may find it challenging to break out above the resistance at ₱33.30.
Despite the bullishness of my 10SMACD and Momentum Power Indicator, my True Market Sentiment for Ayala Land is a contrarian.
Recommendations
Do you already have Ayala Land in your portfolio? Hold your position if your trailing stop is intact and if you’re a low-risk investor. Remember that today’s True Market Sentiment is not bullish. You have the option to top up at or near the dominant range if you’re a high-risk investor. Do an upward adjustment on your trailing stop every time the price goes up. You can use my trailing stop calculator, which you’ll find in the TOOLS tab of our online stock market library.
Are you planning to enter a new position on Ayala Land? I find it more logical to wait for a breakout above ₱33.30 so you’ll have a more attractive reward-to-risk ratio. You will find my reward-to-risk ratio calculator, trailing stop calculator, and other calculators in the TOOLS tab of our online stock market library at Equilyst Analytics.
Bookmark our online stock market library to read our daily analysis, listen to our podcasts, watch our videos, use our tools, use our stock market dictionary (word bank), and more.
On the other hand, try our stock market consultancy service if you want me to teach you:
Lesson 1: how to find the stocks that you should add in your watchlist
Lesson 2: how to check if the current trend is more than likely to continue
Lesson 3: how to know the true market sentiment
Lesson 4: how to identify a confirmed buy signal
Lesson 5: how to identify the best price range to trade
Lesson 6: how to sell more logically and less emotionally
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