Sentimental and Technical Analysis for Global Ferronickel Holdings, Inc. (PSE:FNI)
Global Ferronickel Holdings (FNI) draw the line for a strong support level at P2.00. That level was tested several times throughout the entire last quarter of 2021.
This February 2022, it broke the resistance near P2.45, confluent with the 38.2% retracement of the Up Fibonacci.
Then, in the first week of March 2022, it broke another resistance near P2.70, confluent with the 61.8% retracement of the Up Fibonacci.
It broke another resistance near P3.15 in the second week of March 2022. It’s the same week that it set a new 5-year-high at P3.50.
As of March 10, 2022, FNI is back within the P2.70-P3.15 support-resistance range.
If traders’ attempt to push the price higher and break P3.50 comes into fruition, we will be looking at P3.85 as the next resistance to break.
FNI is still trading above its 10-day simple moving average. By classical interpretation, this stock is still trading bullishly in the short term. But, remember, whatever the indicator is telling you, you should always pay more attention to your trailing stop because it’s the one thing that tells you if you can still afford to take more risk or not anymore.
Meanwhile, the price points that got the biggest volume and the highest number of trades were closer to the intraday low than the intraday high.
On the other hand, it seems that FNI holders are trying to regain their position above P3.15 fold since 26 of the 51 participating brokers, or 50.98% of all participants, registered a positive Net Amount on March 10, 2022. Likewise, 28 of the 51 participating brokers registered a higher buying than selling average or 54.90% of all participants.
Moreover, the 51 participating brokers’ buying and selling average as of closing on March 10, 2022 was P2.97 and P3.01, respectively.
Additionally, 15 out of 51 participants, or 29.41% of all participants, registered a 100% buying activity and 7 out of 51 participants, or 13.73% of all participants, registered a 100% selling activity on March 10, 2021.
You know what these statistics mean if you already attended my 1-on-1 masterclass training on my proprietary methodology called The Evergreen Strategy in Trading and Investing in the Philippine Stock Market. Send me a message if you’re interested in booking me for an online 1-on-1 masterclass training.
Foreign Investors
FNI, with a day change of -9.22%, followed through the US Indices’ significant drop last March 9, 2022. It’s the day when the foreign investors registered their biggest one-day net foreign selling worth P26 million since January 22, 2021.
Even though the foreign investors are net buyers year-to-date, their participation is relatively insignificant. The net foreign buying year-to-date is only a measly P6 million.
Volume
FNI’s daily volume since February 2022 is relatively outstanding as most of those days were beyond 100% of the stock’s 10-day volume average. If the price goes up with a higher volume than at least 50% of its 10-day volume average, the price is more likely to continue.
However, check if the last price is closer to the resistance than the support level. Profit-taking is likely to happen if it’s closer to the resistance than the support level. Whatever the case is, you should be fine if you are on top of your trailing stop.
Is the concept of using a trailing stop new to you? This is one of the many things I’ll teach you in my 1-on-1 masterclass training on The Evergreen Strategy in Trading and Investing in the Philippine Stock Market. Send me a message if you’re interested in booking me for an online 1-on-1 masterclass training.
Moving Average Convergence Divergence
FNI’s MACD remains bullish by classical interpretation. I see no formation of a bearish convergence between the MACD and signal lines, too. This is another indicator that supports the possibility of seeing FNI sustaining its position above P3.15.
But, again, don’t keep your hopes up too high. Above all these interpretations, respect your trailing stop.
Still a Newbie-friendly Stock?
FNI has a 10-day historical volatility score of 121%. That’s an extremely high erraticity level. This means I no longer see FNI as a newbie-friendly stock. The surge in price since March 4, 2022 made it reach this extremely high erraticity level.
If you’re a newbie trader, you’re more likely to make emotional than logical decisions on stocks with an erratic price movement. Stick with stocks with a low to moderate erraticity level for now. As your experience and expertise grow, you’ll be more ready to trade high to extremely high erraticity stocks.
Are you a subscriber of Equilyst Analytics? You may ask me for the erraticity level of a stock in our Private Clients Forum. Please read the Subscriber’s Manual to know how to post in the Private Clients Forum.
Is There a Confirmed Buy Signal?
Let’s look at the ratings of the six indicators that compose my proprietary methodology called The Evergreen Strategy in Trading and Investing in the Philippine Stock Market. If all of them are bullish, there’s a confirmed buy signal.
Once there’s a confirmed buy signal, you need to calculate your reward-to-risk ratio and initial trailing stop. Do a test-buy or top-up on your existing shares if and when you’re satisfied with the ratio.
Parameter 1: Is its last price moving above its 10-day simple moving average (SMA)?
Answer: YES
Parameter 2: Is its last volume bar higher than 50 percent of its 10-day volume average?
Answer: YES
Parameter 3: Is its moving average convergence divergence (MACD) moving above its signal line?
Answer: YES
Parameter 5: Is its Dominant Range Index bullish?
Answer: Login to your account and ask for the DRI of this stock.
Parameter 6: Is its Market Sentiment Index bullish?
Answer: Login to your account and ask for the DRI of this stock.
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