JFC Technical Analysis: Is the Bearishness Getting Worst?

JFC Technical Analysis

Jollibee Foods Corporation (JFC) closed at 225.20, down by 3.76 percent, last Tuesday, August 20, 2019.

Foreign investors registered a Net Foreign Selling worth P104.5 million. Foreign fundies already erased their P186.4 million Net Foreign Buying last July 2019. They are net sellers on JFC YTD.

Jollibee Foods Corporation (JFC) - Daily Chart EOD - 8.20.2019

My three simple moving averages (10, 50, 200) are all in a perfect bearish alignment.

Support is at 220. Resistance is at 240. If JFC breaks below 220, watch out for 200 as a precursor to 180. If, and only if, it breaks below 180, seeing JFC hitting 150 will be more likely.

My 10SMACD combo is still invalid. My Momentum Power Indicator is bearish.

There are no buy signals. The downtrend is still more likely to continue.

RSI is, again, poised to revisit the classical oversold level. Take note that “oversold” is not equal to “buy now.” What’s cheap could get cheaper if there are no signs of reversals.

You have to understand that not because a company got good fundamentals, it doesn’t mean every dip is an opportunity to buy. No, no, no.

For value investors, JFC got bad fundamentals. For growth investors, like JFC’s Chairman Tony Tan Caktiong, JFC got great fundamentals. So, who are you between the two?

Regardless of who you are between the two, dips without signs of reversals are not “opportunities to buy more for less,” but “opportunities to wait some more.”

This is one of the many reasons why I teach these 6 lessons to those who attend my The Evergreen Strategy in Trading and Investing in the Philippine Stock Market seminar.

Lesson 1: how to identify the best stocks to trade
Lesson 2: how to check if the current trend is more likely to continue
Lesson 3: how to know the true market sentiment
Lesson 4: how to identify a confirmed buy signal
Lesson 5: how to identify the best price range to trade
Lesson 6: how to sell more logically and less emotionally

Click here to check my schedule.

JFC’s risk level is still moderate.

DMI and ADX confirm that the downward trend of JFC is very strong.

Trade-Volume Distribution

Last Price: 225.20
VWAP: 226.973775
Most Traded: 229.2 – 227
Most Voluminous: 227 – 225.2

JFC - Trade Volume Distribution EOD - 8.20.2019

The dominant range is between 225 and 227. This is closer to the intraday low than the intraday high. This is another reason why the downtrend is still more likely to continue for JFC.

True Market Sentiment

True Market Sentiment of JFC as of Aug-20-2019 at 03:30PM, with a last price of 225.200.
4 of the top 10 brokers registered a positive Net Amount
5 of the top 10 brokers registered a higher Buying Average than Selling Average
True Market Sentiment: BEARISH
Top 10 Players’ Buying Average: 227.4033
Top 10 Players’ Selling Average: 227.1837
Bonus Info:
29 out of 68 participants or 42.65% of all participants registered a 100% BUYING activity
6 out of 68 participants or 8.82% of all participants registered a 100% SELLING activity

JFC - True Market Sentiment EOD - 8.20.2019

The top 10 players’ mood last Tuesday was bearish. They snubbed the dips. Let me paraphrase that if that didn’t sync in. The top 10 brokers did not see a massive reason to buy the dips of JFC last Tuesday.

Recommendations

Do not enter a new position on JFC yet. Be on a wait-and-see mode on this stock. There is a big opportunity in this company but not now. There are no signs of exhaustion yet.

If you have JFC, please respect your risk tolerance percentage. Where is your trailing stop loss?

You have another problem if you don’t know where your trailing stop loss is, why you should use it, how to calculate it, and what-not.

This is one of the topics I discuss in the Lesson # 6 of The Evergreen Strategy in Trading and Investing in the Philippine Stock Market seminar.

Attend this seminar. Here’s the schedule.

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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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