Fruitas Holdings, Inc. (FRUIT) started a new trading week on August 17, 2020, with an unchanged Day Change at the closing price of ₱1.18. The total turnover value was relatively slim at ₱9.50 million. Local investors engulfed the trades of the foreign investors on Fruitas Holdings.
I am not interested to know more about the foreign investors’ participation in Fruitas Holdings because of their relatively insignificant trades since FRUIT debuted in the Philippine Stock Exchange.
While MACD is hovering the signal line, I’m not yet optimistic about my outlook on Fruitas Holdings because I see a formation of a bearish divergence between the +DMI and -DMI. Add to my bearishness the position of the last price below the 10-day SMA.
Moreover, Fruitas Holdings is no longer a newbie-friendly stock because its high-risk level is caused by its historical volatility score of nearly 78 percent.
Fruitas Holdings struggles to break out above the immediate resistance at ₱1.20. The immediate support is near ₱1.00. I don’t see a pressing concern on FRUIT’s daily volume since it’s higher than the 50 percent of FRUIT’s 10-day volume average. However, for a stock that’s closer to its immediate resistance than the immediate support, a volume that’s closer, if not higher than, to the 100 percent of the stock’s 10-day volume average is preferred to influence a stronger upward momentum.
Trade-Volume Distribution Analysis
- Last Price: ₱1.18
- VWAP: ₱1.18
- Dominant Range: ₱1.16 – ₱1.18
I see a bearish 10SMACD. I also see a bearish Momentum Power Indicator. That means I see no confirmed buy signal for Fruitas Holdings yet. Besides, you won’t get an attractive reward-to-risk ratio even if this stock will register a bullish 10SMACD and Momentum Power Indicator because the last price is already closer to the resistance than the support level. You can use my reward-to-risk ratio calculator. You’ll find it in the TOOLS tab of my online stock market library.
True Market Sentiment – EOD
- True Market Sentiment: NEUTRAL
- 6 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: ₱1.1684
- Top 10 Players’ Selling Average: ₱1.1711
Bonus Info:
- 7 out of 22 participants or 31.82% of all participants registered a 100% BUYING activity
- 4 out of 22 participants or 18.18% of all participants registered a 100% SELLING activity
True Market Sentiment – MTD
True Market Sentiment: NEUTRAL
- 6 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: ₱1.1684
- Top 10 Players’ Selling Average: ₱1.1711
Bonus Info:
- 7 out of 22 participants or 31.82% of all participants registered a 100% BUYING activity
- 4 out of 22 participants or 18.18% of all participants registered a 100% SELLING activity
The end-of-day and month-to-date True Market Sentiments of Fruitas Holdings are also topsy-turvy. This reflects that traders’ low confidence level to pierce the resistance and sustain its position above ₱1.20 (at least, for now).
Recommendations
For those who have FRUIT: Hold your position if your trailing stop is still intact. If you’re a low- to moderate-risk investor or trader, you have a data-driven reason to reduce the percentage of risk of your trailing stop. I also have a trailing stop calculator in the TOOLS tab of my online stock market library. You can use it for free.
Don’t top up or average down yet, so you don’t waste your buying power. It’s best to wait for a break out above ₱1.20 to get a bullish 10SMACD and Momentum Power Indicator. Once both indicators are bullish, you may top up within the dominant range. If you’re one of our clients, you may post your request for our latest Trade-Volume Distribution analysis on FRUIT in our Private Clients Forum (Stock Analysis Requests section).
For those who don’t have FRUIT: Do not enter a new position unless and until the 10SMACD and Momentum Power Indicator of FRUIT are bullish. Calculate your reward-to-risk ratio first once both indicators are bullish. Do a test-buy within the prevailing dominant range if you’re satisfied with the ratio. Remember to buy in tranches if your buying power is bigger than ₱20,000.00 and if you’re a newbie trader or investor.
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