FNI Technical Analysis: How Far Can It Go?

FNI Technical Analysis

Global Ferronickel Holdings, Inc. (FNI) closed at P1.90 per share, up by 13.10 percent, as of closing on September 3, 2019. The total turnover value was P417,280,160.00.

Global Ferronickel Holdings (FNI) - Daily Chart EOD 1 - 9.3.2019

Foreign investors registered a net Foreign Buying worth P169,123,930.00. This is FNI’s biggest one-day Net Foreign Buying since May 30, 2016. Because of today’s towering NFB, foreign investors are net buyers of FNI year-to-date.

FNI broke the resistance at P1.86 today, making that price point as its immediate support level. The next immediate resistance is at P2.08 followed by P2.28, which are the 38.2 percent and 50 percent retracements of the Down Fibonacci, respectively.

RSI’s value is exaggerated already. Even if RSI is trading above 80 percent already, I don’t translate that as a sell signal. My sell signal is when my trailing stop loss is hit. No predefined Target Selling Price. No Fair Value. Just a trailing stop loss for me.

FNI is one of the mining stocks that broke above their 200-day SMA with the announcement that Indonesia will ban all nickel ore exports starting January 2020.

My 10SMACD combo is valid on FNI.

Trade-Volume Distribution

Last Price: 1.90
VWAP: 1.823378458
Most Traded: 1.93 – 1.8
Most Voluminous: 1.77 – 1.9

Global Ferronickel Holdings (FNI) - Trade Volume Distribution EOD 1 - 9.3.2019

The dominant range that got the biggest volume and the highest number of trades is registered closer to the intraday high than the intraday low.

Overall, my Momentum Power Indicator is bullish.

True Market Sentiment

True Market Sentiment of FNI as of Sep-03-2019 at 03:30PM, with a last price of 1.900.
4 of the top 10 brokers registered a positive Net Amount
3 of the top 10 brokers registered a higher Buying Average than Selling Average
True Market Sentiment: BEARISH
Top 10 Players’ Buying Average: 1.8210
Top 10 Players’ Selling Average: 1.8273
Bonus Info:
7 out of 68 participants or 10.29% of all participants registered a 100% BUYING activity
13 out of 68 participants or 19.12% of all participants registered a 100% SELLING activity

Global Ferronickel Holdings (FNI) - True Market Sentiment EOD 1 - 9.3.2019

Some brokers chose to realize their profits today as shown by the bearish mood of the top 10 brokers.

You should be alright if you attended my Evergreen Strategy in Trading and Investing in the Philippine Stock Market seminar or if you’re a subscriber of Equilyst Analytics.

I talked about FNI and other mining stocks in yesterday’s video. You should have benefitted in today’s ascent in price of FNI if you followed my advice in the video.

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Philippine Stock Market Seminar by Jaycee De Guzman of Equilyst Analytics

Recommendations

Do you already have FNI?

If the last price is still trading above your trailing stop loss, you have the data-driven signals to top up. Please do it within the dominant range only.

If and when FNI starts tomorrow at a price lower or higher than the dominant range I mentioned above, immediately request for FNI’s latest Trade-Volume Distribution and True Market Sentiment charts in our Private Clients Forum.

Eyes on your trailing stop loss. Expect profit-taking as soon as the hype brought about by the announcement that Indonesia will ban all nickel ore exports beginning January 2020 dies down.

You don’t have FNI yet?

Please know that FNI is not a newbie-friendly stock anymore due to its high risk level based on its historical volatility score at almost 100 percent.

However, since my 10SMACD combo is valid and the Momentum Power Indicator is bullish, you also have data-driven reasons to do a test-buy tomorrow.

Please know that you must calculate your reward-to-risk ratio before you decide to do a test-buy.

It’s not enough that my 10SMACD combo is valid and my Momentum Power Indicator is bullish if you’re yet to have the stock. You must be satisfied with your reward-to-risk ratio also.

You should know this already if you attended my Evergreen Strategy in Trading and Investing in the Philippine Stock Market seminar or if you’re a subscriber of Equilyst Analytics.

Please use the search functionality of our Private Clients Forum and search for “reward-to-risk ratio” so you can back-read those posts I wrote about this topic.

You may also review the handouts I sent you. It’s in Lesson # 6.

Should you decide to do a test-buy, make sure that you identify your trailing stop loss. Do not forget to do an upward adjustment every time the price moves higher than the prevailing price.

Also, adjust the percentage of risk applied in calculating your trailing stop loss the moment you’ve spotted signs of a weakening upward momentum.

If you’re not sure on how to check that, please ask for our assistance in our Private Clients Forum.

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About the Author
Jaycee De Guzman is an online business strategist, an equity analyst, an entrepreneur, and a computer scientist by profession. Visit his website at www.jayceedeguzman.com.

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