SM Prime Holdings, Inc. (SMPH) closed today, 14 December 2018, in the red zone, -0.57 percent below the previous trading day’s closing price. The foreign investors registered a Net Foreign Selling of a little over P14 million today. Mandarin Securities registered a nearly 100 percent selling activity today. On the other hand, Asiasec Equities is the most aggressive buyer among of the top 10 players today after registering a 100% buying activity on this stock. You’ll see it on my Top 10 Players chart below.
SMPH failed to regain its position above 35.38 after it broke below this previous support level last Thursday. With such a relatively significant bearish volume today, there’s an increased likelihood of re-testing the support near 33.50 as a precursor to 31.70.
If you will observe closely, you will notice that SMPH re-tested the 32.30-33.00 range several times in the recent past before it registered a bullish reversal. I am not implying that it’s going to happen again but that’s one historical activity you may want to consider in your buying decisions.
Now, let me tell you what I see on my Price-Volume Distribution and Top 10 Players charts.
Price-Volume Distribution
VWAP: 34.7904
Top 5 Prices (Biggest Trades): 35, 34.95, 35.15, 35.45, 35.1
Top 5 Prices (Biggest Volume): 34.6, 35.4, 35, 35.45, 34.9
VWAP – This stands for the Volume Weighted Average Price. It was said that institutional brokers buy at or close to the VWAP so they won’t disrupt the normal volatility of the market. That’s the classical belief. I created my own observations. Below are a few of them.
- If the VWAP is below the current price and the current price is lower than the previous trading day’s closing, the intraday bearishness might continue.
- If the VWAP is below the current price but the current price is higher than the previous trading day’s closing, the intraday bullishness might continue.
- If the VWAP is above the current price but the current price is lower than the previous trading day’s closing, I maintain a neutral sentiment. I see that as an on-going tug-of-war between the bears and the bulls.
- If the VWAP is above the current price and the current price is higher than the previous trading day’s closing, the ball is still in the court of the bulls.
Top 10 Players
Trading participants of SMPH with a 100% Buying and Selling Activity as of Dec-14-2018 at
17 out of 48 participants or 35.42% of all participants registered a 100% BUYING activity
2 out of 48 participants or 4.17% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 34.9057
Top 10 Players’ Selling Average: 34.9562
The psychological average price of the top 10 players as of Dec-14-2018 at
I presume that these 17 confident brokers bought the dips for their long-term investors. The top 10 players’ buying average that is higher than today’s closing price can represent the buying confidence of the long-term investors to this bluechip stock.
My Recommendations
I’d like to establish that my recommendations below are based on the premise that you are a long-term investor on SMPH and that you have found fundamental reasons to say that SMPH is worthy to have for the long haul. As to whether SMPH is fundamentally undervalued or not, I’d like to reserve the answer to that for our EquiPicks subscribers.
Be in a wait-and-see mode if you don’t have SMPH yet. Observe if it will come closer to the support levels I’ve plotted on the chart above. Buy near support.
If you already have SMPH, you may hold your position and buy near the support level. If you don’t have the time to monitor the stock, buy the dips. Then, you sell near the resistance levels or follow your trailing stop loss.
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