NOW Technical Analysis: Confident to Hit ₱4 Despite the Bearish Market Sentiment Index?

Now Corporation (NOW) Technical Analysis

Now Corporation (NOW) closed on March 4, 2021 at ₱3.40 per share, up by 20.14 percent. Did the foreign investors significantly help in pushing the price at a higher level? No. Of the total turnover value of nearly ₱485 million, they only contributed more or less 2 percent. They registered a net foreign selling worth almost ₱7 million.

NOW’s immediate support is registered near ₱2.68, while its immediate resistance is around ₱4.00.

While the last candlestick of NOW soars above the 10-day simple moving average (SMA), I see an indecision sign between the buyers and the sellers. It’s evident by the positioning of the last candlestick’s body at the middle of the lower and upper wicks.

Meanwhile, MACD registered a golden cross above the signal line, which is a bullish signal. The +DMI also did the same above the -DMI.

Despite those bullish signals, I’d like to remind relatively new traders and investors about NOW’s sensitivity or risk level according to its 10-day historical volatility score of 125 percent. This stock has an extremely high sensitivity level. This means either erratic spikes or engulfing bodies of candlesticks were spotted within the past 10 trading days. This is not the kind of behavior that suits new traders who are still in the process of taming emotions with a process-oriented approach like my Evergreen Strategy 2.0.

Dominant Range Index

Dominant Range Index: Bearish
Last Price: ₱3.40
Intraday Low: ₱3.2100
Intraday High: ₱3.7800
VWAP: ₱3.5592
Dominant Range: ₱3.40 – ₱3.50

NOW’s Dominant Range Index is bearish because its dominant range is closer to the intraday low than the intraday high. Besides that, the last price is lower than its volume-weighted average price (VWAP).

Market Sentiment Index EOD – March 4, 2021

Market Sentiment Index: BEARISH
4 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: ₱3.5581
Top 10 Players’ Selling Average: ₱3.5617
11 out of 83 participants, or 13.25% of all participants, registered a 100% BUYING activity
8 out of 83 participants, or 9.64% of all participants, registered a 100% SELLING activity

Market Sentiment Index WTD – March 1-4, 2021

Market Sentiment Index: BEARISH
4 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: ₱3.5292
Top 10 Players’ Selling Average: ₱3.5341
12 out of 84 participants, or 14.29% of all participants, registered a 100% BUYING activity
5 out of 84 participants, or 5.95% of all participants, registered a 100% SELLING activity

The tug-of-war I mentioned above is evident by the bearish Market Sentiment Index across two timeframes (EOD and WTD). The number of participants that registered a 100 percent buying activity isn’t on a significant level.

Recommendations

There is no confirmed buy signal for NOW Corporation as of the market closing on March 4, 2021.

Even though the Day Change surged by 20.14 percent, my Evergreen Strategy 2.0 wants me to err on the side of caution, which perfectly suits a risk-averse investor like me.

If you already have a NOW position, and if your trailing stop remains intact, I advise that you hold your position. If you’re a low-risk investor, it’s better to reduce the percentage of risk on your trailing stop to lock-in more profits or reduce more potential losses. Don’t average down. It’s not the most logical time to do that yet. Wait for NOW to have a confirmed buy signal according to my Evergreen Strategy 2.0 if you’re under my mentorship or if you’re one of our clients at Equilyst Analytics.

If you don’t have a position on NOW yet, do not do a test-buy. You may add NOW to your watchlist if you still have an available slot. Then, ask for our latest NOW analysis in our Private Clients Forum as often as you deem necessary.

You can use my trading calculators. You’ll find them in the TOOLS tab of the LIBRARY page of Equilyst Analytics’ website.

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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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