Technical Analysis
Leisure and Resorts World Corporation is trading at 4.26 per share as of 2:15pm of May 16, 2019. After trading above its 10SMA for 4 straight trading days, it managed to break above its resistance at 4.00. The previous resistance now stands as its support area while the new resistance level is near 4.50.
The three moving averages of LR are already aligned in a perfect bullish fashion. Therefore, it puts LR in a bullish position not only in the short-term but also in the long-term period.
Remember that this stock stayed in a consolidation period between 3.20 and 3.70 for more or less 4 months before breaking out from that range.
Foreign investors are net buyers on LR for 2019 year to date. However, realize that the participant of the foreign fundies on LR is not as sizable as their participation in trading index companies. I am not going to factor in the foreign investors’ sentiment in my overall sentiment for LR.
Trade-Volume Distribution Analysis
VWAP: 4.1512
Most Traded Prices: 4.2, 4.2, 4.16, 4.18, 4.27
Most Voluminous Prices: 4.25, 4.2, 4.27, 4.1, 4.16
The dominant range is closer to the intraday high than the intraday low. This is another intraday confirmation of LR’s bullishness. If you’re trading LR, I suggest that you position within the area of the most traded and most voluminous range or anywhere near the VWAP.
Market Participant Analysis
Trading participants of LR with a 100% Buying and Selling Activity as of May-16-2019 at 02:10PM:
- 5 out of 47 participants or 10.64% of all participants registered a 100% BUYING activity
- 22 out of 47 participants or 46.81% of all participants registered a 100% SELLING activity
- Top 10 Players’ Buying Average: 4.1539
- Top 10 Players’ Selling Average: 4.1585
Despite the intraday bullishness of LR, some traders decided to lock-in their profits. The evidence is on the nearly 50% market participants who registered a 100% selling activity on LR as of the time of generating my Market Participant Analysis chart.
The top 10 players’ buying and selling averages are in confluence with the position of the VWAP. This means that the bullish sentiment I got from my Market Participant analysis matches the bullish sentiment I got from my Trade-Volume Distribution analysis.
Overall Sentiment and Recommendation
I am bullish on LR. Even though my DMI histogram shows that the upward momentum of LR is still very strong, consider also that RSI is already close to its classical overbought level. While some traders have a “buy on breakout” strategy, others have a “sell on breakout” strategy in raking in profits. Most likely, those 22 market participants who transacted 100% selling activity on LR are the ones who got trapped in the 4-month consolidation period of LR.
It’s best that you employ a trailing stop loss strategy. If it still has more gas to traverse this uphill climb, your trailing stop loss will allow you to take advantage of the strong upward momentum of LR based on the ADX of my DMI histogram.
If you don’t have LR but are planning to trade the name, I suggest that you calculate your reward-to-risk ratio first. Consider the position of the current price of LR and its distance between its immediate support and resistance levels. If you’re happy with your reward-to-risk ratio, that’s when you should consider doing a test-buy within the dominant range I mentioned above.
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I hope this helps. If it does, please let me know in the comments Thank you!
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