San Miguel Food and Beverage, Inc. (FB) closed today at its intraday high of 104.00 per share, 3.48 percent higher than yesterday’s closing.
For the past three trading days, FB has been testing the resistance near 104.00. Even though today’s volume more than doubled yesterday’s, that bullish volume was still not good enough to pierce the resistance at 104.00. This goes to show that FB traders are in an eavesdropping mode, waiting to see if there’s anyone willing to buy a significant number of shares above 104.00.
I understand the level of hesitation FB traders have. After all, even the foreign investors are not having it. They have been net sellers for the past three trading days.
If traders get tired of playing the wait-and-see game, the price might just bounce away from 104 and re-test the support at 95, which is in confluence with the 61.8 percent Fibonacci retracement. If the bullish volume will continue tomorrow, we’re looking at 119.00 as the psychological resistance of FB, which is the 161.8 percent of the Fibonacci.
FB is a moderate risk stock with its historical volatility score of 62 percent.
Price-Volume Analysis
VWAP: 103.4347
Most Traded Prices: 104, 98.25, 98, 98.2, 97.95
Most Voluminous Prices: 104, 98, 98.2, 98.25, 97.95
Apparently, today’s traders were willing to buy up since the intraday high got the biggest volume and the highest number of trades. If you’re trading FB, watch out for 104 within the first 15 to 30 minutes of trading and see if it can stay afloat on this price point.
Top 10 Players Analysis
Trading participants of FB with a 100% Buying and Selling Activity as of Feb-28-2019 at 08:36PM:
10 out of 40 participants or 25.00% of all participants registered a 100% BUYING activity
8 out of 40 participants or 20.00% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 100.3526
Top 10 Players’ Selling Average: 100.6692
While it shows in my price-volume analysis that traders were willing to buy the stock up, the top 10 players seem a little bit conservative because they only registered a buying average of 100.35 per share. It looks like it is wise to monitor the price between 100 to 104 tomorrow morning.
My Overall Sentiment and Recommendations
If your average price is below 99, be alert when the price breaks below 99. That price is 78.60 percent retracement of the Fibonacci. If it goes below 99.00, the chances are high for the support at 95.00 to be revisited. So make sure you are on top of your trailing stop loss.
If your average price is higher than the current price, calculate your trailing stop loss from your average price.
On the other hand, if your average price is lower than the current price, calculate your trailing stop loss from the current price.
If you do not have FB yet, doing a test-buy on breakout is an option for those who are comfortable with the buy-on-breakout strategy. For the bottom-fishers, wait near 95.00.
If you are my client, please post a request for my latest price and volume analysis of FB in our Private Clients Forum tomorrow morning.
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