Raslag Corp. (ASLAG) Analysis
Did you buy some shares of Raslag Corp. (ASLAG) on its IPO day on June 6? I know you’re still holding your position if you applied a 30% risk percentage when you computed your initial trailing stop. On the other hand, it’s clear as daylight that you’re in trouble if you don’t have an implicit and explicit risk management plan. A wise trader or investor knows where and when to exit even before he buys the stock.
Raslag Corp. (ASLAG) is up by 4.76% as of 12pm on June 8, 2022. That brings down the negative relative change to 20.16% from its IPO’s opening price P2.40 to its current price of P1.98 as of this writing. Consider reducing the percentage of risk applied on your trailing stop if and when both Dominant Range and Market Sentiment Indices are bearish.
On this intraday (5-minute) chart, the first support level lays near P1.94 followed by P1.91. Resistance is at P2.00 per share.
Take a look at ASLAG’s Dominant Range Index chart below to know the price range that got the biggest volume and highest number of trades from opening until 12 noon today.
Trade-Volume Distribution Analysis
Dominant Range Index: BULLISH
Last Price: 1.98
VWAP: 1.97
Dominant Range: 1.97 – 1.98
Although the dominant range is closer to the intraday high than the intraday low, I prefer the last price to move to the upper half of the dominant range to increase the chance of seeing ASLAG close at, if not higher than, P2.00 per share today. Otherwise, seeing ASLAG above P2.00 will remain as a developing story.
Turn your attention to ASLAG’s Market Sentiment Index if you’d like to know the buying and selling averages of participants, the number of participants with a 100% buying and selling activity, and the number of participants that bought more shares than what they sold.
Market Sentiment Analysis
Market Sentiment Index: BULLISH
22 of the 58 participating brokers, or 37.93% of all participants, registered a positive Net Amount
21 of the 58 participating brokers, or 36.21% of all participants, registered a higher Buying Average than Selling Average
58 Participating Brokers’ Buying Average: ₱1.97100
58 Participating Brokers’ Selling Average: ₱1.97450
8 out of 58 participants, or 13.79% of all participants, registered a 100% BUYING activity
17 out of 58 participants, or 29.31% of all participants, registered a 100% SELLING activity
It’s delighting to see a bullish rating next to the Market Sentiment Index, but I prefer to see the percentage of participants with a positive net amount to go beyond 50% to boost the appetite of eavesdroppers to buy more shares. Since the percentage of participants with a positive net amount is below 50%, it’s more likely for eavesdroppers to stay on the sidelines as they continue to temp-check the mood of the market.
Another thing I’d like you to consider is that nearly 30% of today’s participants did nothing but sell ASLAG shares as of the time of writing. Although none of them made it to the top 10 list, their pessimistic sentiment can still be a source of influence.
Verdict
I don’t have ASLAG shares at the moment. I’d rather wait for a breakout above P2.00 and re-assess things from there. I’ll sit tight on a wait-and-see mode for now as I wait for preferable situations to unfold.
If you already have ASLAG shares, the most important thing now is in knowing that you’re still holding your position because your paper loss is still within your tolerable risk. I can’t imagine what you’re going through if your first reaction when you stumbled upon the phrase “risk management plan” is, “What on earth is a risk management plan?” I don’t know if I should say “I’m sorry” or “My condolences”.
Need Help?
Attend this online masterclass on the Evergreen Strategy in Trading and Investing in the Philippine Stock Market to learn the following lessons:
- Lesson 1: how to find the stocks that you should add to your watchlist
- Lesson 2: how to look for a confirmed buy signal
- Lesson 3: how to buy logically and strategically
- Lesson 4: how to sell with more logic and less emotion
Click here to register for my Evergreen Strategy in Trading and Investing in the Philippine Stock Market.
- Key Prices for PH Bluechip Stocks 30% Above 52-Week Low - June 4, 2024
- May 2024 Market Sentiment Rating of 30 PH Bluechip Stocks - June 3, 2024
- EquiTalks: ICT, BPI, AEV Updates – 5.29.2024 - May 29, 2024
