Puregold Price Club, Inc. (PGOLD) Technical Analysis
I know you don’t want to read a bearish introduction, but Puregold Price Club is more likely to test the support at ₱29.00. Its immediate resistance is near ₱34.00.
PGOLD dropped today at ₱31.65, down by 3.95 percent, with a total turnover value of nearly ₱240 million. Blame the foreign investors for being the main driver of PGOLD’s today’s descent. The foreign investors printed a net foreign selling worth ₱128 million today. Also, they’re net sellers year-to-date. Month after month, they’ve been registering a net foreign selling amount except for April 2021 but only with a measly net foreign buying worth ₱3.50 million.
Despite PGOLD’s downtrend movement for more or less nine (9) consecutive months, its erraticity level remains low at 36 percent as of today’s closing. It means it’s still a newbie-friendly stock, but it’s not a ticket that automatically makes it a buyable stock. All six parameters of my Evergreen Strategy 2.0 must be bullish to get a confirmed buy signal. So, let’s check them out.
Parameter 1: Puregold’s last price is moving below its 10-day simple moving average (SMA). That’s bearish.
Parameter 2: PGOLD’s moving average convergence divergence (MACD) is moving below its signal line. That’s bearish, too.
Parameter 3: The last price of ₱31.65 is lower than PGOLD’s volume-weighted average price of ₱31.8068. Again, that’s bearish.
Parameter 4: Puregold’s last volume bar is higher than 50 percent of its 10-day volume average. That’s bullish.
Parameter 5: PGOLD’s Dominant Range Index is bearish.
Parameter 6: PGOLD’s Market Sentiment Index is bullish.
Does PGOLD have a confirmed buy signal? You should know the answer by now based on what I mentioned above.
Dominant Range Index
Dominant Range Index: Bearish
Last Price: ₱31.65
Intraday Low: ₱31.2000
Intraday High: ₱33.3000
VWAP: ₱31.8068
Dominant Range: ₱31.25 – ₱31.85
Market Sentiment
Market Sentiment Index: BULLISH
62 of the 76 participating brokers, or 81.58% of all participants, registered a positive Net Amount
54 of the 76 participating brokers, or 71.05% of all participants, registered a higher Buying Average than Selling Average
76 Participating Brokers’ Buying Average: ₱31.81966
76 Participating Brokers’ Selling Average: ₱31.83153
44 out of 76 participants, or 57.89% of all participants, registered a 100% BUYING activity
3 out of 76 participants, or 3.95% of all participants, registered a 100% SELLING activity
Synthesis
Puregold failed to get a bullish rating for all the six parameters I mentioned above. So, PGOLD got no confirmed buy signal as of closing on May 14, 2021.
What should you do if you already have PGOLD in your portfolio? Assuming your trailing stop is intact, I don’t need a data-driven reason for you to reduce the percentage of risk of your trailing stop. Why? Today’s Market Sentiment Index is still bullish. In the course manual of the Evergreen Strategy 2.0, I wrote the parameters you need to check that will trigger the option to reduce the percentage of risk of your trailing stop and how you’re going to do it. If you’re one of our clients, read and understand the course manual.
On the other hand, don’t hurry if you don’t have PGOLD. You may add it to your watchlist if you still have an available slot to fill so you can continue monitoring it for a confirmed buy signal. Remember that you have to compute your reward-to-risk ratio once a confirmed buy signal is spotted. So do not buy unless and until you’re satisfied with your reward-to-risk ratio, even if there’s a confirmed buy signal. It’s all in the course manual of my Evergreen Strategy 2.0. Feel free to use my stock market calculators.
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