Lopez Holdings Corporation (LPZ) Analysis
Lopez Holdings Corporation (LPZ) went up by 16.74 percent at ₱2.65 per share on Monday, October 5, 2020, with a total turnover value worth ₱90.70 million.
Despite the ascent in price, the foreign investors took that as a golden opportunity to have a “graceful exit”. What does that mean? They registered a net foreign selling worth ₱32.56 million. They’re net sellers year-to-date, anyway.
Lopez Holdings Corporation broke the previous resistance at ₱2.52, now acting as the immediate support. LPZ stayed below the previous resistance for nearly three months. Expect a sudden spike on any lagging indicator’s chart every time there’s an inorganic ascent in price.
The immediate support sits near ₱2.52, while the immediate resistance stands near ₱2.78.
Lopez Holdings Corporation is now a high-risk stock due to its 10-day historical volatility score of nearly 90 percent. Before this inorganic spike, LPZ only had a low-risk level due to its historical volatility score of 20 percent. I don’t need to re-emphasize how huge the jump was from 20 to 90 percent.
Meanwhile, LPZ’s moving average convergence divergence (MACD) is moving above the signal line. The +DMI is also moving above the -DMI. DMI’s ADX is already higher than 25 points. I am not very confident with the inorganic bullishness of these two indicators.
Trade-Volume Distribution Analysis
Last Price: ₱2.65
VWAP: ₱2.80
Dominant Range: ₱2.65 – ₱2.65
Even though the last price gapped up and the last volume bar bullishly engulfed the previous trading day’s volume bar, the last price of ₱2.65 is lower than LPZ’s 10-day volume-weighted average price of ₱2.80. That’s a bearish signal as far as my methodology at Equilyst Analytics is concerned.
Let’s add more pain to the injury. The dominant singular price point of ₱2.65 is closer to the intraday low than the intraday high. The dominant range that’s closer to the intraday high is between ₱2.80 and ₱2.90. So, if LPZ will trade against my bearish sentiment by the next trading day, watch out for the price between ₱2.80 and ₱2.90. You might see the price playing actively within that range by the next trading day.
The bottom line is that even my 10SMACD combo is bullish, LPZ’s Momentum Power Indicator is bearish. In other words, there is no confirmed buy signal for LPZ. If you want a clearer message than that, it means the price is more likely to go down by the next trading day.
Do you want more data-driven proof that backs up my bearish sentiment on LPZ? I’ll show you the True Market Sentiment charts of this stock in two timeframes then.
True Market Sentiment – EOD (October 5, 2020)
True Market Sentiment: NEUTRAL
8 of the top 10 brokers registered a positive Net Amount
3 of the top 10 brokers registered a higher Buying Average than Selling Average
Top 10 Players’ Buying Average: ₱2.8117
Top 10 Players’ Selling Average: ₱2.8568
17 out of 56 participants or 30.36% of all participants registered a 100% BUYING activity
8 out of 56 participants or 14.29% of all participants registered a 100% SELLING activity
True Market Sentiment – MTD (October 1-5, 2020)
True Market Sentiment: NEUTRAL
8 of the top 10 brokers registered a positive Net Amount
2 of the top 10 brokers registered a higher Buying Average than Selling Average
Top 10 Players’ Buying Average: ₱2.8064
Top 10 Players’ Selling Average: ₱2.8375
17 out of 57 participants or 29.82% of all participants registered a 100% BUYING activity
9 out of 57 participants or 15.79% of all participants registered a 100% SELLING activity
Even the end-of-day and month-to-date True Market Sentiments are adamant about giving Lopez Holdings Corporation the green light. LPZ might re-test the prevailing support at ₱2.52 by the next trading day.
Recommendations
Respect your trailing stop. It’s the thing that can preserve your capital, protect your gains, and prevent unbearable losses. If you are using a trailing stop, you don’t need to ask any random people on Facebook if you should buy, hold, or sell any stock.
The question is, “Is your trailing stop intact?”
If your answer is affirmative, I recommend that you either hold your position or lock-in some gains. Do not buy more shares yet. Again, the price is more likely to drop by the next trading day.
If you do not know what a trailing stop is, I recommend that you visit our online stock market library and use the SEARCH box on that page to look for my “trailing stop” related articles.
If you’re interested in trading LPZ, but you don’t have it in your portfolio, do not test-buy yet. Wait for its 10SMACD and Momentum Power Indicator to become bullish. Once both indicators are bullish, calculate your reward-to-risk ratio to ensure that you’re vying for a bigger potential gain than your potential loss.
I cannot discuss the nitty-gritty of my Evergreen Strategy in Trading and Investing in the Philippine Stock Market. Still, you can watch or listen to the Tagalog and English versions of this in our online stock market course, which is one of the six inclusions of our stock market consultancy service at Equilyst Analytics.
Have You Decided to Learn How to Invest INDEPENDENTLY and Trade TACTICALLY?
You may already know SMAs, MACD, DMI, VWAP, support, and resistance, but maybe you’re wondering what 10SMACD, Momentum Power Indicator, and True Market Sentiment are. You’ll learn my entire methodology through the online stock market course of Equilyst Analytics. Access to the online stock market course is just one of the six services you’ll get when you subscribe to our stock market consultancy service. Read the details of our stock market consultancy service so you’ll know how I can make you learn how to invest independently and trade tactically.
You will find tutorials about SMA, MACD, DMI, VWAP, support, and resistance on Google or YouTube, but you will never find the methodology of how I mix and match them. My service is not about giving you a lecture about the definition of these indicators. My service is about teaching you my methods on HOW to use these indicators, WHEN to use them, WHY use them, and more.
Join My Facebook or LinkedIn Group
Join my Facebook Group or LinkedIn Group for a chance to win a 1-year subscription to Equilyst Analytics and a P500.00 smartphone load for free in our daily contest!
- 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
