SM Investments Corporation (SM) slid by 5.01 percent on 3 May 2018. Know that there will be a dilution on 7 May 2018 on its share price. That’s the Ex-Div Date of the P8.20 per share cash dividend. Watch this video from Investopedia if you’d like to know what dilution is.
Technical Analysis
SM is bearish as the price is below the moving averages, not to mention that the longer-term moving averages are above the shorter-term moving averages. While SM is not yet trading inside the confirmed oversold territory based on Stochastic Daily, it’s already oversold on the Stochastic Weekly.
Is SM already in a confirmed bearish territory based on RSI? No, it isn’t yet. SM is still 20-plus points above the classical oversold zone of RSI Monthly, Weekly, and Daily. MACD seems to agree with RSI since it’s still above the signal line although both lines are below the zero line.
Besides that, the closing price of SM on 3 May 2018 is still not touching the lower Bollinger Band. It’s like there’s more room for SM to wiggle. The only question is whether it’ll wiggle upward or downward from here.
The major support sits at 813.00. The major support, which was the previously broken support, is at 913. Once SM’s price goes back to the 913 level, the resistance will be 980.
Price-Volume Distribution
Watch out for 900.00. It could act as SM’s intraday support or resistance by the next trading day.
Volume
As of May 3, 2018, at 03:30PM, the volume is 87.37% of the previous trading day.
When the price is bearish and the volume crossed the 30-day volume average of the stock, for me, the bias is on the continuity of the bearish sentiment.
Foreign Fund Flow
On a 30-day trading period, SM is on a Net Foreign Selling worth PHP746,467,870.00.
This is a tool that you’ll only find at Equilyst Analytics.
Are you a beginner? A long-term investor? I strongly advise that you check those stocks where foreign investors are not just active but also significantly invested.
Top 10 Players – 3 May 2018
Participants with a 100% Buying and Selling Activity as of May-03-2018 at 03:30PM:
- 22 out of 50 participants or 44.00% of all participants registered a 100% BUYING activity
- 4 out of 50 participants or 8.00% of all participants registered a 100% SELLING activity
- Top 10 Players’ Buying Average: 914.0520
- Top 10 Players’ Selling Average: 912.5029
The psychological average price of the top 10 players as of May-03-2018 is between 914.0520 and 912.5029.
This is a tool that you’ll only find at Equilyst Analytics. Why did I develop this tool?
I needed to know the psychological average price of the top 10 brokers who have traded a specific stock within a specific time period.
I needed to know the buying average of the top 10 brokers who have traded a specific stock within a specific time period.
I needed to know the selling average of the top 10 brokers who have traded a specific stock within a specific time period.
I wanted to know how many brokers, out of all the brokers who have traded a specific stock within a specific time period, registered a 100% buying activity.
I wanted to know how many brokers, out of all the brokers who have traded a specific stock within a specific time period, registered a 100% selling activity.
The buying and selling averages of the top 10 brokers are a sneak preview of the range of their collective average price.
If I know the psychological average price of the top 10 brokers who have traded a stock, I can calculate in my mind how much more could a trader, with an x percentage of risk tolerance, afford to hold should the stock’s price go south.
The month-to-date, week-to-date, and end-of-day Top 10 Players charts are automatically included in our Daily Stock Analysis report.
You may also request for your stock’s latest Top 10 Players chart in our Private Clients Forum. We will interpret it for you.
Risk Level
SM has a low-risk level as of 3 May 2018.
Are you a beginner and a long-term investor? Stick with low- to moderate-risk stocks with priority on low-risk ones.
Why?
Low- to moderate-risk stocks are not “heart attack” stocks.” I mean, their share price does not fluctuate erratically. They go up and down organically and steadily.
This is a tool that you’ll only find at Equilyst Analytics.
This Risk Level chart is included in our Daily Stock Analysis report.
Also, you’ll find the Risk Level chart of all stocks listed on the Philippine Stock Exchange on our Stock Ranking System.
You may also request for one in our Private Clients Forum.
Our analysts also mention the risk level of the 10 stocks we analyze for our Top 5 Gainers and Top 5 Losers Analysis video. We send this video to the subscribers of this service by the end of each trading day to prepare them for the next one.
My Overall Sentiment
I’m bearish on SM based on my technical analysis.
I want you to understand something, however.
Not all bearish stocks are to be avoided.
It depends on your trading profile.
Do you see SM for short-term trading or long-term investing?
If you see SM for short-term trading, your inclination could be more likely towards the avoidance of this stock for the time being.
If you see SM for long-term investing, your inclination could be on averaging down, especially if your overall buy case is still intact.
A buy case is a collection of reasons (fundamental or technical reasons) that made you decide to trade or invest in a stock.
If you’re just about to enter a new position, calculate your reward-to-risk ratio first. I advise this because you’ll be compelled to consider your risk tolerance and consider the stock’s support and resistance when you calculate your reward-to-risk ratio.
Did You Find My Free Report Helpful?
Let me know in the comments. I love to read comments, especially those expressions of appreciation.
- 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
