HOME Technical Analysis: Should Value Investors Buy the Dips?

AllHome Corp. (PSE:HOME) is priced at ₱11.5 per share as of 02:26 PM GMT+8 on November 4, 2019. It is up by 0.1742 percent.

The Total Turnover Value is at ₱64,417,806.00. The local traders are the main drivers of HOME today.

Foreign investors registered a Net Foreign Buying worth ₱6,945,200.00. They are net sellers year-to-date.

The immediate support is near ₱11.40, while the immediate resistance is near ₱11.53.

I’m not going to mention the status of my 10SMACD because it’s not yet applicable. I need at least 26 trading days to come to pass.

HOME’s risk level is low due to its historical volatility score of 3 percent.

For new traders, I advise that you prioritize checking those stocks that have a low to moderate risk level.

Trade-Volume Distribution Analysis

Last Price: 11.48
VWAP: 11.481242
Most Traded: 11.48 – 11.48
Most Voluminous: 11.48 – 11.48

The Momentum Power Indicator of HOME is bearish because all of 4 elements are bearish. The downward movement of the price is more than likely to continue as of the time of writing this analysis.

True Market Sentiment – Intraday

True Market Sentiment on HOME as of Nov-04-2019 at 02:30PM, with a last price of 11.4800.
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: 11.4815
Top 10 Players’ Selling Average: 11.4829
Bonus Info:
5 out of 29 participants or 17.24% of all participants registered a 100% BUYING activity
12 out of 29 participants or 41.38% of all participants registered a 100% SELLING activity

This neutral True Market Sentiment does not show signs of a formation of a bullish reversal. Bias is still on the downside.

Have you already watched the video-on-demand version of my Evergreen Strategy in Trading and Investing in the Philippine Stock Market? I discussed in that video how I find the best candidate stocks for your watchlist, how to know the true market sentiment, how to know if the trend is more than likely to continue, how to find confirmed buy signals, how to find the best price range where I buy, and how I sell more logically and less emotionally.

After watching the video, you will know how to analyze exactly how I analyze. Click here for more information.

Recommendations

My evergreen strategy tells me that the bias is still on the downside. While this overall sentiment is subject to change depending on what the prevailing data tells, it’s best not to enter a new position on HOME as of the time of writing this analysis. There is no confirmed buy signals.

If you have HOME in your portfolio, I hope you know where your trailing stop is. Your trailing stop preserves your capital, protect your gains, and prevent unbearable losses. If you are not using it and you’re only relying to the old-fashioned Buy Below Price and Target Selling Price, you are at risk of having a more painful than profitable experience trading the stock market. You can do better than just consoling yourself using the rustic phrase “I’m a long-term investor, anyway.” Be logical.

It’s okay to be a value investor (present-focused) or a growth investor (future-focused). But no matter how undervalued a company is based on your valuation, there is ZERO LOGIC in buying a stock that is still more than likely to drop in terms of price. Why can’t you wait to buy it later once the decided sellers have reached an exhaustion level? There’s a way to check that, anyway. If fundamental analysis makes you money, then continue using it. But don’t let it corrupt your ability to exercise common sense.

Read: 4 Reasons Why You Must STOP Using a Buy Below Price and a Target Selling Price

Regardless whether you already have a position on this stock or you’re yet to enter a new position, it’s best that you ask for our latest analysis and recommendation in our Private Clients Forum so we can tell you if the technical buy indicators are still intact. Also, this enables us to tell you the newest dominant range of the stock so you can buy strategically. If you’re a subscriber of Equilyst Analytics, you have an access to our Private Clients Forum.

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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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