Macroasia Corporation (MAC) recovered a bit when it closed positively by 3.45 percent at ₱5.10 on August 4, 2020, which is the beginning of a 15-day Modified Enhanced Community Quarantine (MECQ) in Metro Manila and four other areas.
The total turnover value reached nearly ₱12 million. Don’t be impressed because that’s a lot smaller than the turnover value MAC registered from May 2020 to June 2020.
Local investors were the main traders of MAC today. Foreign investors remain as net sellers year-to-date, and have lain low in their participation since June 2020. It’s a Net Foreign Selling worth ₱1.8 million today.
MAC’s support is near ₱4.65, which is a precursor to ₱3.45. The resistance is near ₱7.15, which is a precursor to ₱8.80.
Today’s volume is not that worst because it’s still higher than the 50 percent of MAC’s 10-day volume average.
Are you a newbie trader with an untamed emotion? MAC is not for you because it registers a high risk level due to its 10-day historical volatility score of nearly 97 percent.
The Moving Average Convergence Divergence (MACD) of MAC is bearish. I see the same bearishness on its Directional Movement Index (DMI). The Average Directional Index (ADX) at 24 points seconds the motion.
Trade-Volume Distribution Analysis
Last Price: ₱5.10
VWAP: ₱5.08122
Dominant Range: ₱5.06 – ₱5.13
I got a bullish Momentum Power Indicator for MAC because all four elements of this indicator are bullish. Are you one of our clients at Equilyst Analytics? If yes, review our online stock market course in the COURSE tab of your account so you’ll be reminded what those four elements are, the situations when they become bearish or bullish, why I created it, what I use it for, and more.
True Market Sentiment – August 4, 2020 (EOD)
True Market Sentiment: BULLISH
6 of the top 10 brokers registered a positive Net Amount
6 of the top 10 brokers registered a higher Buying Average than Selling Average
Top 10 Players’ Buying Average: ₱5.0800
Top 10 Players’ Selling Average: ₱5.0791
Bonus Info:
3 out of 25 participants or 12.00% of all participants registered a 100% BUYING activity
5 out of 25 participants or 20.00% of all participants registered a 100% SELLING activity
This bullish True Market Sentiment for August 4, 2020 supports the idea that MAC may have already found its strong support near ₱4.65. However, the week-to-date (August 3 to 4) True Market Sentiment advises us not to be too quick to conclude that MAC is already out of the woods. The week-to-date True Market Sentiment is neutral. Macquarie (broker) is the trading participant that feeds the bears, so to say. You can see that in the EOD and WTD True Market Sentiment charts I have presented. Below are the statistics.
True Market Sentiment – August 3-4, 2020 (WTD)
True Market Sentiment: NEUTRAL
5 of the top 10 brokers registered a positive Net Amount
6 of the top 10 brokers registered a higher Buying Average than Selling Average
Top 10 Players’ Buying Average: ₱5.0004
Top 10 Players’ Selling Average: ₱4.9932
Bonus Info:
7 out of 38 participants or 18.42% of all participants registered a 100% BUYING activity
8 out of 38 participants or 21.05% of all participants registered a 100% SELLING activity
Recommendations
Before I give my recommendation for those who already have and are yet to enter a new position on MAC, be informed that I see no confirmed buy signal for this stock yet.
While MAC’s Momentum Power Indicator and True Market Sentiment are bullish, its 10SMACD is still bearish. What the 10SMACD is, why I created it, how I use it, and so forth are explained in the online stock market course of Equilyst Analytics. Watch the video as a refresher if you’re one of our clients.
If you still have MAC, I assume that your trailing stop is still intact. If you’re a low-risk trader, I would recommend that you hold your position. Do not top up. Do not average down. Do not do peso-cost averaging. Don’t buy more shares yet unless and until its 10SMACD and Momentum Power Indicator are both bullish.
On the other hand, it’s not yet the most logical time to enter a new position on MAC because of the reasons I mentioned above. However, once MAC’s 10SMACD and Momentum Power Indicator become bullish, you need to calculate your reward-to-risk ratio before doing a test-buy. The calculation of this ratio is always an extra process you need to do if you’re yet to enter a new position on any stock once the confirmed buy signal becomes visible.
Suppose you’re satisfied with your reward-to-risk ratio. In that case, you can request our latest Trade-Volume Distribution analysis in the STOCK ANALYSIS REQUESTS section of our Private Clients Forum (for our clients only) to show you the dominant range of the stock at that precise moment. Use our Private Clients Forum to get our guidance as trading happens.
You can use my reward-to-risk ratio calculator, trailing stop calculator, and other calculators on the online stock market library of Equilyst Analytics.
Finally, I need you to understand that my data-driven recommendations are subject to change because my 10SMACD and Momentum Power Indicator are predicated to the prevailing data of the stock. My recommendations above are derived from the end-of-day data as of August 4, 2020. Nonetheless, you should be fine as long as you’re using a trailing stop. It will preserve your capital, protect your gains, and prevent unbearable losses. I taught this part in the lesson # 6 of the online stock market course of Equilyst Analytics.
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