I’ve written my analysis of Vitarich Corporation (VITA) last 10 April 2018. I mentioned in that report that VITA’s ascent in price was supported or backed by volume. If you’ve been reading my free analysis for a while now (especially if you’re my client), you must be familiar with these equations I always refer to.
- bullish price + high volume = high sustainability (current price trend)
- bullish price + low volume = low sustainability (current price trend)
- bearish price + high volume = high sustainability (current price trend)
- bearish price + low volume = low sustainability (current price trend)
Anyhow, it’s been 30 calendar days since my previous analysis of VITA. What’s up now?
I use Fibonacci to identify the psychological resistance of a stock that has just registered an all-time high. The 38.2 percent Fibonacci extension sits near 4.55, which is the psychological resistance of VITA for me. The support is located near 3.05, which is the 38.2 percent Fibonacci retracement. You can tell the deeper support levels I’ve plotted on my chart below.
Price-Volume Distribution
Based on my Price-Volume Distribution chart, 3.80 and 3.70 are the frequently transacted price points today.
Call me bias (since I’m the developer of this Price-Volume Distribution calculator) but I like checking my Price-Volume Distribution chart over the intraday chart of any stock. It’s quicker and easier to know the favorite price points of traders for any stock when I generate this chart. I’m at an advantage because I know where to put my buy or sell flags based on where most of the trades are happening.
If you’re one of our clients, please post your request for your stocks’ price-volume distribution chart in our Private Clients Forum, especially during the first 30 minutes of trading, 30 minutes before recess, 30 minutes after recess, and 30 minutes before the end of trading.
Top 10 Players’ Sentiment
Participants with a 100% Buying and Selling Activity as of May-10-2018 at 03:30PM:
- 6 out of 67 participants or 8.96% of all participants registered a 100% BUYING activity
- 21 out of 67 participants or 31.34% of all participants registered a 100% SELLING activity
- Top 10 Players’ Buying Average: 3.7299
- Top 10 Players’ Selling Average: 3.7433
The psychological average price of the top 10 players as of May-10-2018 is between 3.7299 and 3.7433.
Volume
As of May 10, 2018, at 03:30PM, the volume is 340.95% of the previous trading day. I don’t need to say more about this volume chart. Just keep these equations in mind. Memorize them if you must.
- bullish price + high volume = high sustainability (current price trend)
- bullish price + low volume = low sustainability (current price trend)
- bearish price + high volume = high sustainability (current price trend)
- bearish price + low volume = low sustainability (current price trend)
Foreign Fund Flow
On a 30-day trading period, VITA is on a Net Foreign Buying worth PHP103,381,270.00.
My Recommendation
I’m bullish on VITA as far as the correlation between today’s closing price and volume is concerned.
If you’re a high-risk trader but your conviction level to buy VITA is not extremely high, I suggest you buy in tranches. Then, do not forget to follow a trailing stop-loss and not the plain stop-loss. I don’t need to explain why. Just click that link I’ve embedded to learn why.
If you’re a low-risk trader, study the behavior of VITA in terms of price and volume for now. I just wish you have access to our Private Clients Forum so you can ask me everything you want to ask, particularly about the things I’ve shared with you above. Yes, I personally respond to our clients in our forum.
Did You Find My Free Report Helpful?
Let me know in the comments. I love to read comments, especially those expressions of appreciation.
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