MerryMart Consumer Corp. (MM) Technical Analysis
MerryMart Consumer Corp’s daily volume has noticeably diminished since the last week of March 2021 compared to the previous months. The foreign investors’ participation has followed that trend, too.
Today, May 17, 2021, Merrymart closed at ₱4.03, down by 7.99 percent, with a total turnover of ₱97 million. Only less than one percent of that came from the foreign investors. There’s really not much to expect from the foreign investors as far as their interest on MerryMart is concerned at least since March 2021.
MerryMart’s immediate support sits near ₱3.25 while its immediate resistance hangs near ₱4.50 as a precursor to ₱5.65.
MM has a moderate erraticity level due to its 10-day historical volatility of 61 percent.
Does MerryMart Have a Confirmed Buy Signal?
Let’s check the status of the six parameters of my Evergreen Strategy 2.0 when looking for a confirmed buy signal.
Parameter 1: MerryMart’s last price is moving below its 10-day simple moving average (SMA). That’s bearish.
Parameter 2: MerryMart’s moving average convergence divergence (MACD) is moving below its signal line. That’s bearish, too.
Parameter 3: MerryMart’s last price is lower than its volume-weighted average price of ₱4.1069. Again, that’s bearish.
Parameter 4: MerryMart’s last volume bar is higher than 50 percent of its 10-day volume average. Well, that’s bullish.
Parameter 5: MerryMart’s Dominant Range Index is bearish.
Parameter 6: MerryMart’s Market Sentiment Index is bullish.
So, does MerryMart have a buy signal? Unfortunately, there’s none. It failed to get a bullish rating for all six parameters.
Dominant Range Index
Dominant Range Index: Bearish
Last Price: ₱4.03
Intraday Low: ₱3.9300
Intraday High: ₱4.3700
VWAP: ₱4.1069
Dominant Range: ₱3.95 – ₱4.03
Market Sentiment Index
Market Sentiment Index: BULLISH
46 of the 58 participating brokers, or 79.31% of all participants, registered a positive Net Amount
40 of the 58 participating brokers, or 68.97% of all participants, registered a higher Buying Average than Selling Average
58 Participating Brokers’ Buying Average: ₱4.11366
58 Participating Brokers’ Selling Average: ₱4.15281
29 out of 58 participants, or 50.00% of all participants, registered a 100% BUYING activity
3 out of 58 participants, or 5.17% of all participants, registered a 100% SELLING activity
Synthesis
We already know that MerryMart has no confirmed buy signal as of today’s market closing. But what logical options do you have if you already have it in your portfolio or if you’re planning to enter a new position?
Assuming your trailing stop is still intact, you have the option to hold your position since its Market Sentiment Index for today is still bullish. Please review the course manual of my Evergreen Strategy 2.0 if you’re one of our clients. I included a flowchart that will guide you when you should consider reducing the percentage of risk of your trailing stop or pre-empting it. Feel free to use my trailing stop calculator and other calculators.
On the other hand, you may add MerryMart in your watchlist if you still have an available slot but don’t buy it yet. Continue monitoring the flowchart when looking for a confirmed buy signal. It’s in the course manual of my proprietary strategy, too. Remember that you need to compute your reward-to-risk ratio once a buy signal is spotted. Buy within the prevailing dominant range if you’re happy with the computed ratio. Otherwise, postpone the plan to buy.
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