AXLM Technical Analysis: What to Expect if You Traded Axelum Today?

Axelum Resources Corp. (AXLM) is trading at 4.32 apiece, down by 14 percent, as of 2:56PM on October 7, 2019.

It opened at 5.29 per share, registered an intraday high of 5.30, and an intraday low of 4.19.

The total turnover value is at P780.6 million. Foreign investors only registered a Net Foreign Buying worth P1.5 million.

What happened to KPPI and AXLM is a perfect example of the usual disclaimer, “Past performance does not guarantee future returns.”

It’s not an apple-to-apple comparison but you get what I mean as far as trading IPOs is concerned.

It is for this reason that I treat every trade as a unique trade.

When things like this happens, it’s all the more that you appreciate knowing how to respect risk management in your strategy. Use a trailing stop always.

Trade-Volume Distribution

Last Price: 4.28
VWAP: 4.75895875
Most Traded: 5.29 – 4.87
Most Voluminous: 5.29 – 4.87

Axelum Resources Corp (AXLM) - Trade Volume Distribution 1 - 10.7.2019

This 5.29 is a standalone dominant price point. Removing it from the range, the dominant range will be 4.50 to 4.90. This is closer to the intraday low than the intraday high. This means the descent in price is more likely to continue. This is far from what I saw on KPPI’s first day in the Philippine Stock Exchange.

True Market Sentiment

True Market Sentiment of AXLM as of Oct-07-2019 at 02:56PM, with a last price of 4.2800.
2 of the top 10 brokers registered a positive Net Amount
4 of the top 10 brokers registered a higher Buying Average than Selling Average
True Market Sentiment: BEARISH
Top 10 Players’ Buying Average: 4.7364
Top 10 Players’ Selling Average: 4.7403
Bonus Info:
10 out of 106 participants or 9.43% of all participants registered a 100% BUYING activity
16 out of 106 participants or 15.09% of all participants registered a 100% SELLING activity

Axelum Resources Corp (AXLM) - True Market Sentiment 1 - 10.7.2019

This bearish mood of the top 10 brokers also speaks volume about their lack of appetite to push the price of AXLM on a higher level.

Recommendations

If you did a test-buy on AXLM, I suggest that you stick to your trailing stop. Be reminded that the descent in price is more likely to continue.

If you don’t have AXLM, continue staying on the sidelines for now. Do a test-buy once the dominant range is already closer to the intraday high than the intraday low. Then, calculate your trailing stop the moment you entered a new position. You can use this Trailing Stop calculator.

Are you an Equilyst Analytics subscriber?

I’ve created a thread dedicated to AXLM in our Private Clients Forum. Please check it out for more frequent updates. We’ll provide frequent updates on AXLM this entire week.

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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