Basic Energy Corporation (BSC) Technical Analysis
Basic Energy Corporation (BSC) registered an attempt to regain its position above P1.05, confluent with the 50 percent retracement of the Up Fibonacci. As of closing on the last trading day of January 2021, the immediate support sits at P0.85, confluent with the 61.80 percent retracement of the Up Fibonacci. On the other hand, the resistance stands near P1.05. The next resistance waits near P1.25 just in case BSC will manage to break above the immediate resistance next week.
The volume was far from disappointing last Friday, January 29, 2021, but it would have been better had it printed volume above 100 percent of BSC’s 10-day volume average.
The foreign investors’ participation in trading BSC is not significant whether you look at it on the end-of-day, week-to-date, or month-to-date basis.
One thing that new traders and investors should put into consideration is the “extremely high” level of the erraticity of BSC’s price movement. This risk level shows that irregular towering candlesticks engulfed previous candlesticks, and gaps were registered in the not-so-distant past. I encourage newbies to stick with low- to moderate-risk stocks until such time that you’ve gained enough experience and discipline and built a personal methodology. Low- to moderate-risk stocks are stocks with a 10-day historical volatility score not higher than 50 percent.
Meanwhile, I’m not confident that we can rely on the “strong upward momentum” that you’ll get when you translate the DMI histogram according to the classical way of interpreting the positions of the DMI and ADX lines. For one, the bearish divergence between the MACD and signal lines contradicts what the DMI histogram claims. The bears still have the ball, so to say.
Mind you, the 10SMACD combo of BSC is bearish. This stock needs to regain its position higher than P1.25 for a chance to see a bullish 10SMACD combo. This is not the stock for those who want a stress-free experience in trading.
Trade-Volume Distribution Analysis
Last Price: ₱1.05
Intraday Low: ₱0.9900
Intraday High: ₱1.1600
VWAP: ₱1.0771
Dominant Range: ₱1.05 – ₱1.10
BSC’s Momentum Power Indicator is bearish because the last price is lower than its volume-weighted average price (VWAP). Its dominant range is closer to the intraday low than the intraday high.
By now, you should already know that I only see a confirmed buy signal when the stock’s 10SMACD combo and Momentum Power Indicator are both bullish.
True Market Sentiment EOD – January 29, 2021
True Market Sentiment: BEARISH
5 of the top 10 brokers registered a positive Net Amount
4 of the top 10 brokers registered a higher Buying Average than Selling Average
Top 10 Players’ Buying Average: ₱1.0756
Top 10 Players’ Selling Average: ₱1.0810
7 out of 72 participants, or 9.72% of all participants, registered a 100% BUYING activity
13 out of 72 participants, or 18.06% of all participants, registered a 100% SELLING activity
True Market Sentiment WTD – January 25-29, 2021
True Market Sentiment: NEUTRAL
4 of the top 10 brokers registered a positive Net Amount
6 of the top 10 brokers registered a higher Buying Average than Selling Average
Top 10 Players’ Buying Average: ₱1.0763
Top 10 Players’ Selling Average: ₱1.0714
1 out of 97 participants, or 1.03% of all participants, registered a 100% BUYING activity
5 out of 97 participants, or 5.15% of all participants, registered a 100% SELLING activity
True Market Sentiment MTD – January 4-29, 2021
True Market Sentiment: NEUTRAL
6 of the top 10 brokers registered a positive Net Amount
5 of the top 10 brokers registered a higher Buying Average than Selling Average
Top 10 Players’ Buying Average: ₱1.2553
Top 10 Players’ Selling Average: ₱1.2536
1 out of 107 participants, or 0.93% of all participants, registered a 100% BUYING activity
5 out of 107 participants, or 4.67% of all participants, registered a 100% SELLING activity
It isn’t easy to get some strands of hope from the True Market Sentiments across three timeframes. The overall True Market Sentiment is neutral. Take a look at the percentage of market participants that registered a 100 percent buying activity on BSC on the EOD, WTD, and MTD timeframes. There’s relatively little interest to acquire and re-acquire BSC shares on a large-scale basis. As you may already know, sentiments change when things change.
Recommendations
Are you planning to do a test-buy on BSC? Postpone it for now. Wait for its 10SMACD combo and Momentum Power Indicator to switch from bearish to bullish. Ask for our latest analysis in our Private Clients Forum at Equilyst Analytics whenever you spot a significant and drastic change in its price and volume. Once it gets a bullish 10SMACD and Momentum Power Indicator, compute your reward-to-risk ratio relative to the prevailing price’s position to the prevailing immediate support and resistance. If you’re satisfied with the ratio, do a test-buy within the dominant range that you’ll see in our latest trade-volume distribution analysis (you need to request for that in our Private Clients Forum).
Do you already have BSC shares? If your trailing stop is intact, you have the option to hold your position or reduce the percentage of risk on your trailing stop. Please do not add more shares yet because it’s likely for the price to continue to move sideways with a bearish bias. Don’t waste your buying power. Peso cost-averaging will do you more harm than good if you’re buying the stock if no technical or fundamental reason makes it a buyable stock.
You may use our trailing stop calculator, reward-to-risk ratio calculator, average price calculator, new average price calculator, and other stock market calculators in our stock market library. Go to LIBRARY and click the TOOLS tab.
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