Technical Analysis
BDO Unibank, Inc. (BDO) currently trades at 140.00-apiece as of the time of writing this analysis. It’s 0.80 away from breaking the resistance near 140.80.
It made an attempt to breakout above the immediate resistance level when it registered the intraday high of 141.50 but the bearish force managed to pull it back to its prevailing price.
We still have an hour before we hear the closing bell, however.
Immediate support is pegged near 123.90.
BDO is currently trading above its volume weighted average price (VWAP) of 139.93. That’s a confirmation of an intraday bullish signal for me.
I am also seeing a perfect bullish alignment on my three Simple Moving Averages (SMAs) as the shorter-term SMAs are all hovering the longer-term ones. Plus, the last candlestick is already moving above the 10SMA.
This green candlestick is also matched with a bullish volume that is currently printed above BDO’s 10-day volume average. That’s another confirmation of the bullishness of BDO in the short-term just as how it is in the long-term.
The positioning of the price above my 10SMA and the positioning of the MACD line above the signal line is another confirmation of the continuation of the bullishness of BDO.
Speaking of my 10SMA-MACD combo, this combo became true on April 17, 2019. It’s a buy-signal for me when MACD moves above the signal line and the price moves higher than its 10SMA (for as long as there’s no liquidity issue). In other words, my buy-signal appeared last April 17, 2019. You’ll find lots of references about my 10SMA-MACD combo in my previous posts. Feel free to use the SEARCH section to find my other posts.
The next major resistance after 140.80 is near 166.00 but there’s a mid-term resistance near 157.20, which acts as a precursor to the next major resistance.
Overall Sentiment and Recommendations
RSI is approaching the classical overbought level. You don’t need to panic even when RSI enters that level. If these four criteria I listed below are still present by the time RSI is above 80%, then, that’s only a confirmation of a potentially sustainable ascent in price of BDO. So watch out on these four criteria.
- last price must be a green candlestick
- the last price must be above the VWAP
- there must be a green volume bar that is, at least, higher than the 50% of the 10-day volume average of the stock
- the most traded and most voluminous range must be closer to the intraday high than the intraday low
If not all four criteria are present and RSI is already above 80%, consider locking-in some profits.
If you don’t have a position on BDO yet and you’re thinking if it’s logical to enter a new position now, you can do a test-buy within the most traded and most voluminous range I specified below since all four criteria I mentioned above are still present.
Trade-Volume Distribution
VWAP: 139.9291
Most Traded Prices: 140, 140.1, 139.9, 140.2, 136.6
Most Voluminous Prices: 140, 140.1, 139.9, 140.2, 139
However, the presence of these four criteria is not a guarantee that everyday will be a Christmas Day. Remember that the market can be a contrarian no matter how bullish your data-driven sentiment is. So, as part of your risk management, apply a trailing stop loss.
If the concept of using a trailing stop loss is new to you and you’ve accustomed yourself to using a target selling price, please watch this video.
Trailing Stop Loss vs Target Selling Price
In this video, Jaycee De Guzman, our founder and CEO, explained in Filipino why a Trailing Stop Loss trumps a Target Selling Price in terms of the ability to maximize your potential gain and of having a stress-free way of limiting your potential losses within your tolerable risk.Just a little correction on the 17:44 part of the video. It's about the calculation of the yield from the entry price of 19.80 to the Target Selling Price of 21.30. One of the correct formulae is this: (21.30-19.80)/19.80 = 0.0757 or 7.58%Do you need our assistance? Subscribe to our services today!You'll get access to ALL of these three services when you subscribe TODAY!✅ Investment Guide for Long-term InvestorsLearn more: https://www.equilyst.com/invest/✅ Trade Setups for Short-term TradersLearn more: https://www.equilyst.com/trade/✅ Consultation in the Private Clients ForumLearn more: https://www.equilyst.com/mentor/We also encourage you to read our testimonials at https://www.equilyst.com/testimonials/.Subscribe below 👇🏿👇🏿👇🏿 https://www.equilyst.com/subscribe/https://www.equilyst.com/subscribe/https://www.equilyst.com/subscribe/
Posted by Equilyst Analytics on Thursday, April 11, 2019
New entrants must be extra cautious also since nearly 50% of today’s participating brokers registered a 100% selling activity on BDO. Their bearish sentiment did not drag the candlestick to the red zone because their total turnover value (TTV) is not as sizable as the TTVs of the top 10 players. But, at least, by presenting this to you, I was able to give you a glimpse of what relatively smaller participating brokers think about BDO.
Trading participants of BDO with a 100% Buying and Selling Activity as of May-03-2019 at 02:34PM:
- 4 out of 59 participants or 6.78% of all participants registered a 100% BUYING activity
- 29 out of 59 participants or 49.15% of all participants registered a 100% SELLING activity
- Top 10 Players’ Buying Average: 139.8547
- Top 10 Players’ Selling Average: 139.9548
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I hope this helps. If it does, please let me know in the comments Thank you!
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