The most recent confirmed buy signal for Jollibee Foods Corporation (JFC) appeared last December 4, 2019. That was the time when my 10SMACD combo and Momentum Power Indicator agreed to a bullish rating at the same time.
Did I find Jollibee’s price too cheap to ignore when it dropped to 300, 270, 220, and near 180?
No.
You don’t buy the dips just because it’s a blue-chip. You buy the dips because there’s a confirmed buy signal.
Why?
Because all data-driven probabilities were all pointing to one thing back then: that the downtrend was more than likely to continue. So it did.
The True Market Sentiment (of the top 10 players of Jollibee) gave me a bearish rating when the price hit those price points I mentioned above.
That validated my conviction to not hurry and wait for the confirmed buy signals based on my Evergreen Strategy.
So, last December 4, 2019, my 10SMACD and Momentum Power Indicator showed a confluence to a bullish rating as a confirmed buy signal.
The immediate support is near 216 while the resistance is near 238.
Trade-Volume Distribution
Last Price: ₱ 225
VWAP: ₱223.48923
Dominant Range: ₱224.6 – ₱225
True Market Sentiment
True Market Sentiment on Jollibee as of Dec-17-2019 at 03:25PM, with a last price of ₱225.0
True Market Sentiment: NEUTRAL
5 of the top 10 brokers registered a positive Net Amount
5 of the top 10 brokers registered a higher Buying Average than Selling Average
Top 10 Players’ Buying Average: ₱223.6982
Top 10 Players’ Selling Average: ₱223.7801
Bonus Info:
7 out of 59 participants or 11.86% of all participants registered a 100% BUYING activity
28 out of 59 participants or 47.46% of all participants registered a 100% SELLING activity
Recommendations
The confirmed buy signal is still up for Jollibee as of the time of writing this analysis.
Don’t buy at any random price that you see on the ASK column.
Buy within the dominant range instead. The dominant range is the price range that got the biggest volume and the highest number of trades.
Once your buy order is executed, calculate your trailing stop immediately. Your trailing stop will preserve your capital, protect your gain, and prevent unbearable losses.
For those of you already have Jollibee but would like to top up, you may also top up within the dominant range. Make sure that you do an upward adjustment on your trailing stop every time JFC registers a higher prevailing price.
You can use my trailing stop calculator.
Even if the ascent in price is more than likely to continue, don’t expect it to register a green candlestick every single day. For one, the prevailing True Market Sentiment as of the time of writing this analysis is neutral. The top 10 players’ buying average is lower than the top 10 players’ selling average. There’s an intraday tug-of-war between the bears and the bulls. It is for this reason why I strongly suggest the use of a trailing stop.
Don’t just be an expert when it comes to finding buy signals. Be well-prepared, as well, when laying out exit strategies.
📌 ONLINE STOCK MARKET COURSE/SEMINAR
Note: This is Mr. Jaycee De Guzman’s “The Evergreen Strategy in Trading and Investing in the Philippine Stock Market”.
✅ Lesson 1: how to find the stocks that you should add in your watchlist
✅ Lesson 2: how to check if the current trend is more than 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
📌 SUBSCRIPTION SERVICE
✅ You get a video with 10 trade ideas by the end of each trading day.
✅ You can access our investment guide for long-term investing.
✅ You can ask for our latest analysis of any stock in our Private Clients Forum.
✅ You can ask us to check your analysis, based on what you’ve learned from us, in our Study Room.
✅ Earn a 20% commission from every successful referral through our Learn-and-Earn Affiliate Program.
✅ You get a free account with First Metro Securities and a 2-month free access to FirstMetroSec PRO.
- 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
