D and L Industries, Inc. (PSE:DNL) closed at 11.08-apiece as of closing on April 24, 2019, Tuesday. This stock broke below its previous support near 11.16, which is now acting as its immediate resistance. The immediate support is spotted near 10.06 per share.
Technical Analysis
DNL is bearish in the short- to medium-term. However, it remains bullish in the long-term for as long as it’s moving above 10.80.
DNL had been moving sideways between 11.16 and 11.92 since the beginning of 2019. The gradual increase of the bearish volume for the past four trading days proves the weakened interest of traders to hold DNL above 11.16.
Besides, this line at 11.16 is in confluence with the 61.8% Fibonacci retracement. Avid users of Fibonacci know that 61.8% is the golden ratio. If the price broke below the golden ratio, that can be translated as a sign of a reversal of sentiment either from bullish to bearish or sideways to bearish.
My exit signal appeared last April 17, 2019. That was the day when the price dove below the 10SMA and the MACD registered a death cross with the signal line (meaning, the MACD line crossed below the signal line).
While it’s logical to think that it’s better to wait near the support at 10.06, I’d suggest that you also watch the mid-term support near 10.60. That’s the intersection of my three simple moving averages (10, 50, 200).
DNL could test the mid-term support near 10.60. If the downward pull remains stronger than the upward push, the downtrend might continue all the way to 10.06.
Know that these are only data-driven and observation-based probabilities and not guarantees. When things change, sentiments may change, too. For this reason, it is important that we know how to re-evaluate as significant changes in volume happen.
Meanwhile, foreign investors are bearish for 2019 YTD.
Price-Volume Distribution
VWAP: 11.0783
Most Traded Prices: 11.14, 11.2, 11.16, 11.18, 11.12
Most Voluminous Prices: 11, 11.14, 11.12, 11.1, 11.16
Based on my Price-Volume Distribution chart, the most traded and most voluminous range is recorded between 11.00 and 11.20. Since that’s closer to the intraday low than the intraday high, I would say that it’s more likely for the downtrend in price to continue.
Top 10 Players’ Sentiment
Trading participants of DNL with a 100% Buying and Selling Activity as of Apr-24-2019 at 03:30PM:
- 19 out of 30 participants or 63.33% of all participants registered a 100% BUYING activity
- 3 out of 30 participants or 10.00% of all participants registered a 100% SELLING activity
- Top 10 Players’ Buying Average: 11.0768
- Top 10 Players’ Selling Average: 11.0901
Based on my Top 10 Players chart, 63% of today’s participants (brokers) confidently registered a 100% buying activity on DNL. They bought the dips, in other words. It’s possible that these buyers are those who do the “buy near/on support” strategy.
My overall sentiment for DNL is bearish.
Did you buy DNL near 11.90 and you have a percentage of risk tolerance between 7% and 10%? That means your trailing stop loss must have already been hit by now. Consider trimming your losses. Otherwise, it doesn’t make sense planning for your risk management if you’ll only ignore your risk management plan when the reality contradicts your forecast.
At whatever price you bought DNL or whatever your average price or cost is, please make sure you know where your trailing stop loss.
If you don’t know what a trailing stop loss is and how it is computed, you can watch this video below.
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
If you don’t have DNL yet, you have the option to do a test-buy within the most traded and most voluminous range I mentioned above or stay on the sidelines and wait for the descent in price to reach its exhaustion level.
How would you know if the descent in price has reached an exhaustion level?
You will know if the stock continues to register red candlesticks but the size of the volume is already below 50% of the 10-day volume average.
I hope my analysis of DNL helps you make an independent and data-driven investment decision for yourself. This is not a stock recommendation. You must create a decision for yourself based on your financial goal, investment horizon, and risk tolerance.
If this helps, please let me know in the comments below. Thank you.
Do you want me to do this analysis and give you recommended options for each of your stocks? Would you like to ask me directly as trading happens? If your answer is yes, subscribe to Equilyst Analytics. You will get access to my investment guide for long-term investors, trade setups for short-term traders (daily videos), and direct access to my consultation service through our online Private Clients Forum.
Moreover, I conduct workshops on my personal and proprietary strategy in stock trading and investing. It is my deliberate intention to limit the seats to 30 per batch so I can answer all of the questions of the attendees in the 4-hour workshop. Check out my schedule of seminars near your area and buy your ticket immediately to reserve your seat. Reservation is on a “first come, first served” basis.
Please let me know in the comments if this analysis helps. Thank you.
- 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
