SPC Technical Analysis: To Jump Above ₱11.47 or Dive Below ₱10.80?

SPC Power Corporation Technical Analysis

SPC is the second most viewed stock PSE’s EDGE as of closing on May 31, 2021. What do you think is the reason? Your guess is as good as mine! It could be because of the newly released company disclosure regarding the ₱0.60 per common share cash dividend with an Ex-Div Date of June 9, 2021.

I know you’d like to ask how to do the dividend play. I wrote an article in the vernacular (Tagalog) as your guide. I included three scenarios in two different settings. Will you get a dividend if you buy or sell before, on, or after the Ex-Div Date? Please read this article.

So, I’m here to share with you the findings of the algorithm of my Evergreen Strategy 2.0. I know you also would like to know if I see a confirmed buy signal on SPC. Let’s start synthesizing. First, we need to check the ratings of the six parameters I check when looking for a confirmed buy signal. If you’re one of our clients, you’ll find the flowchart I inserted in the course manual of the Evergreen Strategy 2.0.

Parameter 1: Is its last price moving above its 10-day simple moving average (SMA)?
Answer: Yes

Parameter 2: Is its moving average convergence divergence (MACD) moving above its signal line?
Answer: Yes

Parameter 3: Is its last price higher than its volume-weighted average price?
Answer: Yes

Parameter 4: Is its last volume bar higher than 50 percent of its 10-day volume average?
Answer: Yes

Parameter 5: Is its Dominant Range Index bullish?
Answer: No

Dominant Range Index: BEARISH
Last Price: ₱11.24
VWAP: ₱11.1892
Dominant Range: ₱11.20 – ₱11.24

Parameter 6: Is its Market Sentiment Index bullish?
Answer: Yes

Market Sentiment Index: BULLISH
17 of the 25 participating brokers, or 68.00% of all participants, registered a positive Net Amount
19 of the 25 participating brokers, or 76.00% of all participants, registered a higher Buying Average than Selling Average
25 Participating Brokers’ Buying Average: ₱11.19921
25 Participating Brokers’ Selling Average: ₱11.19020
12 out of 25 participants, or 48.00% of all participants, registered a 100% BUYING activity
5 out of 25 participants, or 20.00% of all participants, registered a 100% SELLING activity

Synthesis

SPC got a bullish rating on 5 out of 6 parameters. We need to get 6 bullish ratings to have a confirmed buy signal for a stock. In short, this stock doesn’t have a confirmed buy signal yet. That bearish Dominant Range Index gives us a hint that the bears didn’t give the bulls an easy time today. The dominant range is closer to the intraday low than the intraday high.

However, what should you do if you already have SPC in your portfolio? First, hold your position if your trailing stop remains unscathed, but do not top-up unless you get a confirmed buy signal. Second, if you’re one of our clients, you may ask for SPC’s prevailing Dominant Range Index and Market Sentiment Index in our online discussion group on our website so you can complete your analysis as I do. This way, you can invest independently and trade tactically. Finally, your roadmap is the course manual of my Evergreen Strategy 2.0. I wrote it in layman’s terms, and I included lots of screenshots so you can easily follow through.

The immediate support is at ₱10.80, while the immediate resistance is at ₱11.47. The resistance level is confluent with the 61.80 percent extension of the Up Fibonacci. Refer to the daily chart for the swing low and swing high of my Fibonacci if you want to re-create it on your chart. If SPC goes ballistic and breaks the immediate resistance, the next resistance to break is at ₱12.55.

Lastly, do not buy SPC if you do not have it yet. I know it remains a newbie-friendly stock due to its 10-day historical volatility score of 37.50 percent, but that doesn’t automatically make it a buyable name.

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Jaycee De Guzman

Founder and CEO at Equilyst Analytics

Experience the expertise of Jaycee De Guzman, the brain of Equilyst Analytics, renowned for his unique data analysis. He is a computer scientist and a self-taught digital marketing strategist and agriculturist. Since Equilyst Analytics’ founding in 2012, over 10,000 local and foreign clients have consulted with Jaycee de Guzman on crypto and stock investments.

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