Metrobank (MBT) Analysis: Average Down If You Already Have It?

Metropolitan Bank and Trust Company (MBT) Technical Analysis

I’ll change my writing style for my daily free stock analysis starting in today’s write-up. I’ll remove most of the statistics that are not part of my Evergreen Strategy 2.0 and stick to the ones that Equilyst Analytics’ clients and I only care about as far as the Evergreen Strategy in Trading and Investing in the Philippine Stock Market 2.0 is concerned.

Metrobank’s immediate support is at ₱43.50, while its immediate resistance is near ₱47.50. So does MBT have a buy signal? Let’s find out with my 6-way test according to my Evergreen Strategy 2.0.

Parameter 1: Is Metrobank’s last price moving above its 10-day simple moving average (SMA)?
Answer: Yes

Parameter 2: Is Metrobank’s moving average convergence divergence (MACD) moving above its signal line?
Answer: Yes

Parameter 3: Is Metrobank’s last price higher than its volume-weighted average price?
Answer: No

Parameter 4: Is Metrobank’s last volume bar higher than 50 percent of its 10-day volume average?
Answer: Yes

Parameter 5: Is Metrobank’s Dominant Range Index bullish?
Answer: No

Dominant Range Index: Bearish
Last Price: ₱45.00
Intraday Low: ₱45.0000
Intraday High: ₱45.6500
VWAP: ₱45.1750
Dominant Range: ₱45.00 – ₱45.40

Parameter 6: Is Metrobank’s Market Sentiment Index bullish?
Answer: Yes

Market Sentiment Index: BULLISH
25 of the 39 participating brokers, or 64.10% of all participants, registered a positive Net Amount
22 of the 39 participating brokers, or 56.41% of all participants, registered a higher Buying Average than Selling Average
39 Participating Brokers’ Buying Average: ₱45.23357
39 Participating Brokers’ Selling Average: ₱45.27379
13 out of 39 participants, or 33.33% of all participants, registered a 100% BUYING activity
7 out of 39 participants, or 17.95% of all participants, registered a 100% SELLING activity

Synthesis

A stock must get 6 yeses to have a confirmed buy signal based on my Evergreen Strategy 2.0.

Metrobank failed to snatch a buy signal as of closing on May 19, 2021. So what should you do if you already have it in your stock portfolio?

There’s no need to abandon the stock because its Market Sentiment Index is still bullish. As long as your trailing stop is intact, you may hold your position but do not top-up while there’s no confirmed buy signal. Instead, consider reducing the risk percentage on your trailing stop using my trailing stop calculator if both Dominant Range and Market Sentiment Indices are bearish. I included a flowchart in the course manual of the Evergreen Strategy 2.0 that you can follow.

If you’re only in the planning stage of doing a test-buy on Metrobank, save your buying power for now. Instead, wait for a confirmed buy signal for a higher chance of success in trading or investing in this stock. There’s also a flowchart in the course manual of Evergreen Strategy 2.0 when looking for a confirmed buy signal. Print it out until such time that you already memorized it by heart. Then, remember to calculate your reward-to-risk ratio once a confirmed buy signal is spotted.

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Jaycee De Guzman

Founder and CEO at Equilyst Analytics

Experience the expertise of Jaycee De Guzman, the brain of Equilyst Analytics, renowned for his unique data analysis. He is a computer scientist and a self-taught digital marketing strategist and agriculturist. Since Equilyst Analytics’ founding in 2012, over 10,000 local and foreign clients have consulted with Jaycee de Guzman on crypto and stock investments.

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