Now Corp: Low Volume, P41M Net Foreign Selling, Buy Now or Not Yet?

The relatively low volume of Now Corporation (NOW) is not helping its share price inch up above the 61.8% Fibonacci retracement at 8.65.

Although the price closed above the 10SMA last Wednesday, 11 April 2018, it failed to complete my buying signal since MACD did not seem to have any plan of crossing over the signal line. Even if I wanted to do an “anticipation play,” the volume wasn’t motivating enough.

Did I make the right decision? I can only tell in retrospect (and you, too). Anyway, I do the stock analysis for myself and my clients not to prove that I am right but to reduce the risk by becoming data-driven in all our investment decisions.

The major support of NOW lies near 5.80 while its resistance is near 12.00. The position of the 10SMA is somewhere near the mid-range support at 8.65.

I just didn’t plot it on my chart but NOW’s closing price is in the middle of the upper and lower Bollinger bands. That supports my observation that NOW traders are in an indecision mode.

Volume

As of April 13, 2018, at 03:30PM, the volume is 126.78% of the previous trading day.

Remember these 4 equations below.

bullish price + high volume = high sustainability (current price trend)
bullish price + low volume = low sustainability (current price trend)
bearish price + high volume = high sustainability (current price trend)
bearish price + low volume = low sustainability (current price trend)

Price-Volume Distribution

Considering NOW’s volume, its price action for the past trading days, and what I see on its Price-Volume Distribution chart below, this 8.49 may act as its intraday support or resistance by the next trading day.

If you have access to our Private Clients Forum, I suggest that you request for your stock’s latest Price-Volume Distribution chart and our insights every day, especially during recess.

Our Daily Stock Analysis reports also include the Price-Volume Distribution charts of the 5 stocks we analyze every day.

Risk Level

NOW maintains its extremely high-risk level based on our Risk Level indicator. You can check the risk level of all stocks listed on the Philippine Stock Exchange in our Stock Ranking System. You may also filter and rank them to narrow down the stocks that you need to focus on.

Foreign Fund Flow

On a 30-day trading period, NOW is on a Net Foreign Selling worth PHP41,133,057.00.

NOW registered a P25.5 million Net Foreign Selling last 13 April 2018.

Top 10 Players Sentiment

Looking at the buying average of the top 10 players last Friday, there’s a chance that they will continue to hold since their buying average is higher than the closing price unless they will see a compelling news that will push the panic-selling button.

Participants with a 100% Buying and Selling Activity as of Apr-13-2018 at 03:30PM:

21 out of 57 participants or 36.84% of all participants registered a 100% BUYING activity
9 out of 57 participants or 15.79% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 8.5685
Top 10 Players’ Selling Average: 8.5803

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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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