Megawide Construction Corporation (MWIDE) has set a new all-time high as it closed today at 22.40 per share, up by 4.19 percent.
Its capital appreciation is supported by a thick volume. If you’re like me who’s using a trailing stop-loss, you should be in a worry-free trading mode regardless whether MWIDE will move sideways from here or not.
Be informed that Stochastic Daily, Weekly, and Monthly are all saying that MWIDE is already in an overbought state. But that’s just the classical interpretation of Stochastic. Again, you should be fine if you’re using a trailing stop-loss.
MWIDE’s major support is at 20.60, which is in alignment with the 61.8 percent Fibonacci retracement. The intersection between the 10-day SMA and 20-day SMA also points to 20.60 as the major support.
The psychological resistance is at 24.20, which is in alignment with the 61.8 percent Fibonacci extension.
Volume
As of April 16, 2018, at 03:30PM, the volume is 273.59% of the previous trading day.
Remember these 4 equations below.
- bullish price + high volume = high sustainability (current price trend)
- bullish price + low volume = low sustainability (current price trend)
- bearish price + high volume = high sustainability (current price trend)
- bearish price + low volume = low sustainability (current price trend)
Price-Volume Distribution
The 22.40-22.50 range may act as the intraday support or resistance by the next trading day.
Top 10 Players Sentiment
Participants with a 100% Buying and Selling Activity as of Apr-16-2018 at 03:30PM:
- 8 out of 54 participants or 14.81% of all participants registered a 100% BUYING activity
- 26 out of 54 participants or 48.15% of all participants registered a 100% SELLING activity
- Top 10 Players’ Buying Average: 22.3867
- Top 10 Players’ Selling Average: 22.3849
Today’s top 10 players are extremely bullish on MWIDE. My Top 10 Players chart tells me that the psychological average price of today’s top 10 players is at 22.38.
Foreign Fund Flow
On a 30-day trading period, MWIDE is on a Net Foreign Buying worth PHP396,714,943.00.
The consistent and significant Net Foreign Buying transactions of the foreign investors are supporting the bullish stance of MWIDE’s capital appreciation.
Risk Level
Despite the new all-time high, my Risk Level indicator is still giving MWIDE a low-risk level. This is possible because of the organic or natural ascent of MWIDE’s share price. The fluctuations are not very erratic.
My Overall Sentiment
My overall sentiment on MWIDE, based on technical analysis, is BULLISH. However, not because I’m bullish, it doesn’t mean you can enter on a new position on MWIDE just now.
If you will enter a new position on MWIDE only now, I hope you did your reward-to-risk ratio analysis first. Nothing can be more foolish than a trader who buys a stock first and figures out later if his action is aligned with his investment horizon and risk tolerance.
If you’re a high-risk trader, I suggest that you will do a test-buy only. Use a trailing stop-loss instead of the plain stop-loss to preserve your capital, protect your gains, and prevent unbearable losses.
If you’re a low-risk trader, stop chasing stocks you’re not familiar with.
Did You Find My Analysis Helpful?
Let me know in the comments. I love to read comments, especially those expressions of appreciation.
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