Chelsea Logistics and Infra Hdgs Corp. (C) Analysis
Chelsea Logistics and Infra Hdgs Corp. (C) went down by 4.07 percent at ₱5.90 on October 6, 2020. The total turnover value was ₱261.00 million.
Even if the net foreign buying was worth ₱6.40 million, I don’t consider it a significant amount relative to the foreign investors’ participation in other stocks.
The last volume bar is red, and it’s higher than the 100 percent of Chelsea’s 10-day volume average. That speaks volume when it comes to the likelihood of continuing its bearishness by the next trading day.
Chelsea has already become an extremely high-risk stock due to its 10-day historical volatility score of 110 percent. This risk level means it fluctuates erratically. I do not recommend high to extremely high-risk stocks to newbies unless you’ve already learned how to tame your emotion by having an investment strategy tailored to your personality.
The immediate support is at ₱4.74 as a precursor to ₱4.21, while the immediate resistance is at ₱5.60 as a precursor to ₱6.38.
MACD and DMI are both bullish. The bottom line is, “Does Chelsea have a confirmed buy signal?”
Let’s see if Chelsea has a bullish 10SMACD combo and Momentum Power Indicator through my trade-volume distribution analysis.
Trade-Volume Distribution Analysis
Last Price: ₱5.90
VWAP: ₱6.35
Dominant Range: ₱5.90 – ₱5.90
While the 10SMACD combo of Chelsea is bullish, its Momentum Power Indicator is already bearish. For one, the last price of ₱5.90 is lower than its volume-weighted average price of ₱6.35. Also, its dominant price is closer to the intraday low than the intraday high. Those two bearish elements of the Momentum Power Indicator are more than enough to have a bearish overall rating for this indicator. In short, Chelsea has no confirmed buy signal. When there’s no confirmed buy signal, it means the downtrend is more likely to continue.
True Market Sentiment – EOD (October 6, 2020)
True Market Sentiment: NEUTRAL
5 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: ₱6.3675
Top 10 Players’ Selling Average: ₱6.3380
9 out of 84 participants or 10.71% of all participants registered a 100% BUYING activity
13 out of 84 participants or 15.48% of all participants registered a 100% SELLING activity
True Market Sentiment – WTD (October 5-6, 2020)
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: ₱6.1623
Top 10 Players’ Selling Average: ₱6.1193
7 out of 93 participants or 7.53% of all participants registered a 100% BUYING activity
14 out of 93 participants or 15.05% of all participants registered a 100% SELLING activity
True Market Sentiment – MTD (October 1-6, 2020)
True Market Sentiment: BULLISH
6 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: ₱5.7274
Top 10 Players’ Selling Average: ₱5.6775
5 out of 98 participants or 5.10% of all participants registered a 100% BUYING activity
11 out of 98 participants or 11.22% of all participants registered a 100% SELLING activity
The overall True Market Sentiment’s rating, across three timeframes, is neutral. This rating means that even if Chelsea broke above the previous resistance at ₱4.21, its traders still don’t have a high conviction to believe that there’s a sustainable ascent on this stock price. The majority of traders are still in an eaves-dropping mode, so to say. It’s all the more you should take this sign as a gentle reminder not to make an abrupt decision on your trades.
Recommendations
Is your trailing stop intact? Hold your position if you’re a high-risk trader. Trim your losses if you’re a low-risk trader. Whatever your risk level is, do not add more shares yet because the price is more likely to go down further.
You don’t have Chelsea yet? Don’t rush. Wait for its 10SMACD and Momentum Power Indicator to become bullish. Once both indicators are bullish, calculate your reward-to-risk ratio. If you’re happy with the ratio, ask for our trade-volume distribution analysis in our Private Clients Forum (for clients only), so we can guide you where it’s most logical to do a test-buy. Feel free to use our reward-to-risk ratio and trailing stop calculators in the TOOLS tab of our online stock market library.
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