Nickel Asia Corporation (NIKL) closed on July 19, 2019, Friday, at 2.70, up by 11.11 percent. Support is near 2.35 while resistance is near 3.10.
Two days ago, NIKL broke about its previous resistance near 2.35. It did not come as a surprise to me, the subscribers of Equilyst Analytics, and those who attended my The Evergreen Strategy in Trading the Philippine Stock Market seminar because our 10SMACD and Fantastic Four signals were validated as early as July 16, 2019.
The foreign investors registered a Net Foreign Buying worth P6 million. That is their highest one-day Net Foreign Buying since February 22, 2019.
NIKL has a moderate risk level due to its historical volatility score of 66 percent. For newbie traders, I suggest that you stick with stocks that have a low to moderate risk level. However, please know that a low to risk level score does not mean an automatic buy for you and me. We still have to assess the situation if these stocks with a low to moderate risk levels have data-driven buy signals.
If you have had NIKL and if it’s still trading above your trailing stop loss, I advise that you should be more alert and watchful on Monday since the RSI is too close to the classical overbought level already. The chances for a profit-taking are high in this situation, especially when the Fantastic Four signals start to disappear on the chart.
Trade-Volume Distribution
Last Price: 2.70
VWAP: 2.675204889
Most Traded: 2.71 – 2.7
Most Voluminous: 2.72 – 2.7
Today’s dominant range is closer to the intraday high than the intraday low. Although this means that the upward momentum remains strong, please consider what I said above regarding RSI. If you’re a high-risk and experienced trader, you can top-up within the dominant range. Otherwise, you’re better off holding your position provided the last price of NIKL is still trading above your trailing stop loss.
True Market Sentiment
True Market Sentiment of NIKL as of Jul-19-2019 at 07:50PM, with a last price of 02.700.
5 of the top 10 brokers registered a positive Net Amount
5 of the top 10 brokers have a higher Buying Average than Selling Average
True Market Sentiment: NEUTRAL
Top 10 Players’ Buying Average: 2.6788
Top 10 Players’ Selling Average: 2.6755
Bonus Info:
5 out of 68 participants or 7.35% of all participants registered a 100% BUYING activity
31 out of 68 participants or 45.59% of all participants registered a 100% SELLING activity
Apparently, half of today’s top 10 brokers were also adamant to buy NIKL higher than the volume weighted average price (VWAP). It looks like they also respect the probability of what could happen next now that the RSI is approaching the classical overbought level. They’re also in an eavesdropping mode.
I use my True Market Sentiment chart to get a data-driven feel of the psychology of the top 10 brokers who traded the stock. This helps me get a validation or a confirmation of what the true market sentiment is.
Recommendations
I already mentioned my recommendation for those who have had NIKL.
For those who are planning to enter a new position on NIKL, I strongly suggest that you calculate your reward-to-risk ratio first with respect to the distance of the last price to the immediate support and resistance. If you’re satisfied with the reward-to-risk you’ll get, you can do a test-buy within the dominant range I’ve mentioned above.
Are you a subscriber of Equilyst Analytics? Great! It’s because you must request for NIKL’s latest Trade-Volume Distribution and True Market Sentiment charts in our Private Clients Forum if and when it starts at a price lower or higher than the dominant range I stated. This way, my team and I can tell you if you have to pre-empt your trailing stop loss.
I remain bullish on NIKL with caution.
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