Monde Nissin Corporation (MONDE) Technical Analysis
Monde Nissin Corporation (MONDE) has experienced higher daily volume compared to its 10-day volume average for the majority of trading days. However, during the second and third weeks of May 2023, the volume was below 50% of the 10-day volume average.
Since reaching its all-time high in October 2021, MONDE has been following a downtrend channel. Analyzing its daily chart from March to May, we observe a sideways movement in the short-term channel.
The continuous net foreign selling activities have contributed to the prevailing bearish sentiment surrounding MONDE. Both short-term traders and long-term investors are awaiting a significant catalyst that could drive the price upward.
A bearish signal is evident as the last price of MONDE falls below the 10-day simple moving average, accompanied by the moving average convergence divergence (MACD) line crossing below its signal line.
Although MONDE maintains a low level of volatility, with no significant price fluctuations or engulfing price gaps over the past 10 trading days, this factor provides limited relief and fails to mitigate the existing paper losses.
The primary level of support for MONDE is observed around P5.50. On the other hand, the immediate resistance level is approximately P6.70. These key price levels play a crucial role in determining potential buying and selling opportunities for investors.
Trade and Volume Analysis
Dominant Range Index: BEARISH
Last Price: 8.2
VWAP: 8.32
Dominant Range: 8.2 – 8.2
Market Sentiment Analysis
Market Sentiment Index: BULLISH
42 of the 59 participating brokers, or 71.19% of all participants, registered a positive Net Amount
37 of the 59 participating brokers, or 62.71% of all participants, registered a higher Buying Average than Selling Average
59 Participating Brokers’ Buying Average: ₱8.30448
59 Participating Brokers’ Selling Average: ₱8.32721
28 out of 59 participants, or 47.46% of all participants, registered a 100% BUYING activity
2 out of 59 participants, or 3.39% of all participants, registered a 100% SELLING activity
The contrarian sentiments arising from my trade-volume and market sentiment analysis indicate a growing presence of bearish investors.
Verdict
If you currently hold MONDE, it is advisable to evaluate whether your trailing stop is still intact. If it is, maintaining your position without adding more shares is recommended. Consider preemptively adjusting your trailing stop if both the Dominant Range Index and Market Sentiment Index display consecutive bearish signals for 2 to 3 trading days. If you have not calculated your trailing stop, I suggest using my trailing stop calculator.
On the other hand, if MONDE is not yet a part of your portfolio, it is preferable to wait for all 6 indicators of my Evergreen Strategy to exhibit bullish signals. Once these indicators align, it is crucial to calculate the reward-to-risk ratio and determine its suitability. If the ratio meets your satisfaction, then consider buying within the prevailing dominant range.
Seeking Additional Assistance?
To gain comprehensive knowledge on preserving capital, protecting gains, and minimizing losses using the methodology of my Evergreen Strategy, I recommend registering for my GOLD package. This package will provide you with valuable insights and guidance.
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