GEO Technical Analysis: Can It Break the Fibonacci's Golden Ratio at P0.33?

GEO Technical Analysis

GEOGRACE Resources Philippines, Inc. (GEO) is currently trading at P0.26 per share, up by 27.45 percent, as of 10:37AM GMT+8 of August 29, 2019.

Retail traders are the main movers of GEO as of the time of writing this report. Foreign investors have registered a measly Net Foreign Selling worth P5,550.00.

GEO broke the previous resistance at P0.25/share, which is in confluence with the 23.6 percent retracement of the Fibonacci. The immediate resistance is now at P0.27 per share, which is aligned with the 38.2 percent of the Fibonacci. Support is now at P0.25 per share as a precursor to P0.20 per share.

Despite GEO’s aggressive move this morning, my three simple moving averages (10, 50, 200) are still aligned in a perfect bearish position. This also makes the last score of my oscillators exaggerated. Therefore, I am not going to rely to the classical way of interpreting RSI, Historical Volatility, and DMI at this point.

Nonetheless, my 10SMACD combo is valid. It’s one of the two signals I check before I decide to top up or enter a new position.

Trade-Volume Distribution

Last Price: 0.27
VWAP: 0.250904848
Most Traded: 0.275 – 0.27
Most Voluminous: 0.285 – 0.28

The dominant range is between P0.25 and P0.28, which is closer to the intraday high than the intraday low. This completes the presence of the four criteria that make my Momentum Power Indicator bullish.

If you’d like to learn my complete blueprint in stock trading and investing from stock selection to execution, I’d like to invite you to attend my The Evergreen Strategy in Trading and Investing in the Philippine Stock Market seminar.

I’ll teach you what I personally do from stock selection to buying to selling. It’s from point A to Z.

Lesson 1: how to identify the best stocks to trade
Lesson 2: how to check if the current trend is more likely to continue
Lesson 3: how to know the true market sentiment
Lesson 4: how to identify a confirmed buy signal
Lesson 5: how to identify the best price range to trade
Lesson 6: how to sell more logically and less emotionally

Here’s the schedule:

Makati – September 28, 2019
Davao – October 26, 2019
Cavite – November 23, 2019
Baguio – January 25, 2020
Pampanga – February 29, 2020
Cebu – March 28, 2020

True Market Sentiment

True Market Sentiment of GEO as of Aug-29-2019 at 10:32AM, with a last price of 0.2700.
6 of the top 10 brokers registered a positive Net Amount
2 of the top 10 brokers registered a higher Buying Average than Selling Average
True Market Sentiment: NEUTRAL
Top 10 Players’ Buying Average: 0.2510
Top 10 Players’ Selling Average: 0.2548
Bonus Info:
1 out of 38 participants or 2.63% of all participants registered a 100% BUYING activity
14 out of 38 participants or 36.84% of all participants registered a 100% SELLING activity

Despite the aggressive stance of GEO in the first half of trading, the top 10 brokers’ mood tells me that they’re being careful with their decision to buy higher.

For one, a lot of retail traders decided to sell. Perhaps, these are the ones who were trapped in GEO when it started to consolidate in April this year.

Recommendations

With my 10SMACD combo valid and the Momentum Power Indicator bullish, you have a data-driven reason either to top up or do a test-buy.

If you choose to top up, make sure that the current price is still moving above your trailing stop loss.

If you choose to enter a new position, make sure that you are satisfied with your reward-to-risk ratio. If not, you’re better off buying on breakout or waiting for a pullback.

Whether you choose to top up or do a test-buy, do not buy at any random price. Position within the dominant range only.

If you’re a subscriber of Equilyst Analytics and if you’re trading GEO, please post a request for the stock’s latest Trade-Volume Distribution and True Market Sentiment charts in the Private Clients Forum. Our analysts are on standby waiting for your requests.

If you attended the Evergreen Strategy in Trading and Investing in the Philippine Stock Market seminar already, I suggest that you review Lessons # 1 to 6 in your handouts.

The Evergreen Strategy in Trading and Investing in the Philippine Stock Market SEMINAR

Makati – September 28, 2019
Davao – October 26, 2019
Cavite – November 23, 2019
Baguio – January 25, 2020
Pampanga – February 29, 2020
Cebu – March 28, 2020

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Jaycee De Guzman

Founder and CEO at Equilyst Analytics

Experience the expertise of Jaycee De Guzman, the brain of Equilyst Analytics, renowned for his unique data analysis. He is a computer scientist and a self-taught digital marketing strategist and agriculturist. Since Equilyst Analytics’ founding in 2012, over 10,000 local and foreign clients have consulted with Jaycee de Guzman on crypto and stock investments.

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