SSI Group, Inc. managed to break above the previous resistance at 2.54 as of Monday, April 15, 2019, the first trading day of the 3-day trading week this Holy Week.
Technical Analysis
Support is pegged at 2.54 while the immediate resistance is near 2.84.
Its ascent in price came with a bullish volume above its 10-day volume average.
If you’re following my 10SMA-MACD combination, you would have done a test-buy on SSI between 2.36 and 2.46 last April 1, 2019. That was the day when the price went above the 10SMA and the MACD crossed above the signal line with the volume registered above its 10-day volume average.
This is the first time that SSI was spotted above 2.54 since November 21, 2018.
I have been bullish on SSI since the past 6 trading days since each daily candlestick closed above the volume weighted average price on that day and each day’s volume was higher than 50 percent of each day’s 10-day volume average.
On the other hand, foreign investors are bullish on SSI for 2019 year-to-date.
SSI’s historical volatility is at 29 percent. That gives SSI a low-risk level as far as its 10-day historical price fluctuation is concerned.
Price-Volume Distribution
VWAP: 2.6275
Most Traded Prices: 2.66, 2.7, 2.67, 2.68, 2.69
Most Voluminous Prices: 2.7, 2.6, 2.66, 2.67, 2.55
I suggest that you check the closing price of SSI today. If the last price is above its closing VWAP and if the volume is at least above 50 percent of SSI’s 10-day volume average, then, it’ll be more likely for the price to continue to move up. Otherwise, the price might just revisit its previous resistance near 2.54.
Top 10 Players
Trading participants of SSI with a 100% Buying and Selling Activity as of Apr-15-2019 at 03:12PM:
9 out of 54 participants or 16.67% of all participants registered a 100% BUYING activity
23 out of 54 participants or 42.59% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 2.6073
Top 10 Players’ Selling Average: 2.6249
It’s evident on today’s top 10 players’ sentiment that some traders decided to lock-in some profits.
If you’ve been trading for a while now, you should be familiar by this behavior of traders already.
f a stock has broken out of a resistance level that has never been revisited for more than three months, expect that a significant profit-taking will occur either near or a little bit above that recently broken resistance level.
This is so because most traders tend to be on an eaves-dropping mode in this kind of a scenario. They would like to lock-in some profits and enter a new position if and when they see that some deep-pocketed traders are buying significant amount of shares above the recently broken resistance level.
For those of you who think that I’m only doing a plain vanilla “broker analysis,” you’re wrong.
I analyze the trades of the top 10 players of a stock because what they do represents what they thought and could be thinking about.
I analyze the trades of the top 10 players to get a sneak preview of their psychology.
Overall Sentiment and Recommendation
My overall sentiment on SSI is bullish.
My recommendation is that you rake in some profits above 2.60. You have the option to sell all of your shares or just a few tranches. Should you decide to sell a few tranches only, make sure that you sell all once your trailing stop loss is hit.
If you’re my client at Equilyst Analytics and you have no clue what a trailing stop loss is, please log in to your account, go to the Extras tab, and read Newsletter Vol 1. No. 13. I have explained in Filipino (Tagalog) what a trailing stop loss is, how to compute it, and why you should one.
If this is the first time that you’re going to calculate your trailing stop loss (now that the stock is already in your portfolio), here’s how you should do it.
If your average price is HIGHER than the current price of SSI, calculate your trailing stop loss from your average price.
If your average price is LOWER than the current price, calculate from the current price.
Now, if you don’t have SSI and are thinking if you should enter a new position, make sure that these four criteria are present:
- last price is a green candlestick
- last price is above the VWAP
- volume is at least above the 50% of the 10-day volume average
- the most traded and most voluminous range is closer to the intraday high than the intraday low
If you need assistance on this, please post in our Private Clients Forum (for clients only).
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