Sentimental and Technical Analysis for Solar Philippines Nueva Ecija Corp. (PSE:SPNEC)
Solar Philippines Nueva Ecija Corp. (PSE:SPNEC) seemed to have established a support near P1.82 and a resistance near P2.33. If I’m going to assess SPNEC’s overall trend since it debuted in the Philippine Stock Exchange in December 2021 up to now, I’d say it’s still trading inside the uptrend channel. If I’m going to assess it from February 2022 up to now, I’d say it’s already out of the downtrend channel.
SPNEC is on its way to retesting the resistance near P2.33. To sustain this surge, I prefer to see a green volume bar higher than the 100% of its 10-day volume average on a daily basis. SPNEC’s also trading above its 10-day simple moving average already.
While the price range that got the biggest volume and the highest number of trades as of closing on March 2, 2022 is registered closer to the intraday high than the intraday low, the volume-weighted average price is, unfortunately, higher than the closing price. This, sort of, renders that bullish range as void.
On the other hand, 41 of the 87 participating brokers, or 47.13% of all participants, registered a positive Net Amount. Also, 28 of the 87 participating brokers, or 32.18% of all participants, registered a higher buying than selling average. Moreover, only 7 out of 87 participants, or 8.05% of all participants, registered a 100% buying activity. All of these statistics are as of closing on March 2, 2022.
Foreign Investors
The foreign investors do not show a consistently significant net transaction on SPNEC on a daily basis. For example, the combined net foreign buying amounts they registered in January and February this year do not exceed P3 million. Meanwhile, their month-to-date (March 2022) net foreign transaction is a net selling amount to the tune of nearly P23 million. I can’t look at the foreign investors’ sentiment on SPNEC yet as a major contributing factor in doing a sentimental analysis.
Volume
SPNEC has not registered a volume-related concern over the past 5 trading days. Its daily volume within the past 5 trading days is all higher than 50% of its 10-day volume average. If you’re already trading or planning to trade SPNEC, what you prefer to see is a surge in price backed by a green volume bar that’s, at least, higher than 50% of SPNEC’s 10-day volume average. It would be better if it’s higher than 100% of SPNEC’s 10-day volume average. That’s just a simple price-volume correlation.
Moving Average Convergence Divergence
SPNEC’s moving average convergence divergence or MACD is still classically interpreted as bearish, but I’m already seeing a formation of a bullish convergence between the MACD and the signal lines. We need to see a breakout above the resistance at P2.33 for this bullish convergence to turn into a bullish divergence.
Still a Newbie-friendly Stock?
I cannot classify SPNEC as a newbie-friendly stock anymore because of its extremely high erraticity level due to its 10-day volatility score of 115%. The gap registered between February 24, 2022 and March 2, 2022 caused the huge jump of the 10-day historical volatility score from 80% to 115%.
Is There a Confirmed Buy Signal?
Let’s take a look at the ratings of the six indicators that compose my proprietary methodology called The Evergreen Strategy in Trading and Investing in the Philippine Stock Market. If all of them are bullish, then, there’s a confirmed buy signal.
Once there’s a confirmed buy signal, you need to calculate your reward-to-risk ratio and initial trailing stop. Do a test-buy or top-up on your existing shares if and when you’re satisfied with the ratio.
Parameter 1: Is its last price moving above its 10-day simple moving average (SMA)?
Answer: YES
Parameter 2: Is its last volume bar higher than 50 percent of its 10-day volume average?
Answer: YES
Parameter 3: Is its moving average convergence divergence (MACD) moving above its signal line?
Answer: NO
Parameter 5: Is its Dominant Range Index bullish?
Answer: Login to your account and ask for the DRI of this stock.
Parameter 6: Is its Market Sentiment Index bullish?
Answer: Login to your account and ask for the DRI of this stock.
Need Help?
Subscribe to my stock market consultancy not only for you to understand and know how to interpret my methodology, but also for you to request for my analysis and recommendation for any stock listed in the Philippine Stock Exchange. This way, your trade and investment decisions will be more logical and less emotional. Click here to know more about my premium stock market consultancy service.
I also offer an exclusive, one-on-one, 8-hour training on my proprietary methodology. You’ll get a 1-year subscription to Equilyst Analytics when you avail of this 1-on-1 training with me. Interested? Click here to send me a message.
- 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
