Now Corporation bounced away from the 38.20 percent retracement of the Down Fibonacci today. This 38.20 percent Fibonacci retracement is positioned near ₱2.33. It also acts as the immediate resistance of NOW, while the immediate support is near ₱1.90.
NOW Corp. closed in the red zone by 6.09 percent, at ₱2.16 per share, as of the market close on August 25, 2020. This IT company printed a total turnover value worth nearly ₱54 million with the local investors as the main drivers.
The foreign investors registered a measly net foreign buying worth ₱381,850.00 only. There’s not much to talk about the foreign investors’ appetite to trade NOW Corp. since their trading participation is relatively insignificant.
Take a look at the daily chart of Now Corp. below. The next resistance levels are in confluence with the 50 and 61.80 percent retracements of the Down Fibonacci.
Today’s red candlestick is higher than the 100 percent of Now Corporation’s 10-day volume average. That speaks a lot about the decisiveness of the profit-takers to lock-in profits.
If no positive news about NOW Corp. will be printed overnight, there’s a chance for the unserved bids all the way to ₱2.10 per share, or even lower, to be executed by the next trading day.
It’s good to know that the last price of Now Corp. still hovers above the 10-day SMA, and the MACD line also hovers the signal line. That makes my 10SMACD combo bullish. However, the Momentum Power Indicator must also be bullish for me to say that Now Corp. got a confirmed buy signal.
Trade-Volume Distribution Analysis
Last Price: ₱2.16
VWAP: ₱2.20
Dominant Range: ₱2.15 – ₱2.18
My review of the trade and volume distribution of Now Corp. shows that the last price of ₱2.16 is lower than the volume-weighted average price (VWAP) of ₱2.20. Moreover, the dominant range between ₱2.15 and ₱2.18 is closer to the intraday low than the intraday high. Add to this the red volume bar higher than the 100 percent of this stock’s 10-day volume average. All of those events make a bearish Momentum Power Indicator.
Unfortunately, there’s no confirmed buy signal for Now Corp. yet as far as my Evergreen Strategy in Trading and Investing in the Philippine Stock Market (proprietary methodology) is concerned.
True Market Sentiment – EOD (August 25, 2020)
True Market Sentiment: NEUTRAL
7 of the top 10 brokers registered a positive Net Amount
3 of the top 10 brokers registered a higher Buying Average than Selling Average
Top 10 Players’ Buying Average: ₱2.1996
Top 10 Players’ Selling Average: ₱2.2092
Bonus Info:
14 out of 53 participants or 26.42% of all participants registered a 100% BUYING activity
9 out of 53 participants or 16.98% of all participants registered a 100% SELLING activity
True Market Sentiment – WTD (August 24-25, 2020)
True Market Sentiment: NEUTRAL
8 of the top 10 brokers registered a positive Net Amount
5 of the top 10 brokers registered a higher Buying Average than Selling Average
Top 10 Players’ Buying Average: ₱2.2365
Top 10 Players’ Selling Average: ₱2.2414
Bonus Info:
8 out of 60 participants or 13.33% of all participants registered a 100% BUYING activity
11 out of 60 participants or 18.33% of all participants registered a 100% SELLING activity
True Market Sentiment – MTD (August 3-25, 2020)
True Market Sentiment: NEUTRAL
7 of the top 10 brokers registered a positive Net Amount
4 of the top 10 brokers registered a higher Buying Average than Selling Average
Top 10 Players’ Buying Average: ₱2.1179
Top 10 Players’ Selling Average: ₱2.1203
Bonus Info:
6 out of 78 participants or 7.69% of all participants registered a 100% BUYING activity
12 out of 78 participants or 15.38% of all participants registered a 100% SELLING activity
My True Market Sentiment charts across three timeframes don’t support the idea of seeing Now Corp. piercing the resistance at ₱2.33. This sentiment is subject to change depending on the prevailing True Market Sentiment by the next trading day.
Recommendations
Hold your position if your trailing stop is intact and if you’re a high-risk investor or trader. Don’t top up yet because the downtrend is more likely to continue. On the other hand, consider reducing the percentage of risk on your trailing stop if you’re a low-risk investor. Use my trailing stop calculator for your convenience. You’ll find it in the TOOLS tab of our online stock market library.
Meanwhile, don’t do a test-buy on Now Corp. if you don’t have it in your portfolio yet. Wait for its 10SMACD and Momentum Power Indicator to become bullish. Once both indicators are bullish, calculate your reward-to-risk ratio. Buy within the prevailing dominant range if you’re satisfied with the computed ratio.
You may post a request for our latest analysis on Now Corporation in our Private Clients Forum if you’re one of our clients.
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