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JFC Technical Analysis
Jollibee Foods Corporation (JFC) closed at 228.00 per share, up by 4.88 percent, as of market recess of August 14, 2019. The foreign investors have registered a Net Foreign Selling worth P13.8 million. The local traders and investors are the ones in-charge of the overall price action and volume of JFC in the first half of today’s trading. The total turnover value of JFC is currently at P170.8 million.
JFC has shown respect to the support near 220.00. Although it broke below 220 yesterday, it managed to regain its position above that price level. The acting immediate resistance is 240.00.
This bluechip stock had shown us 6 red candlesticks in a row. Despite the presence of a green candlestick in the first half of trading this Wednesday, the three Simple Moving Averages (10, 50, 200) I’m using are still in a perfect bearish alignment.
Remember that the foreign investors are still not having it. It’s already their 6th day of showing a Net Foreign Selling.
My 10SMACD combo remains bearish, but my Momentum Power Indicator is bullish.
Those who attended my The Evergreen Strategy in Trading the Philippine Stock Market seminar understand what this means and how to use this to make an informed decision.
I’ll be in Makati this August 17, 2019, Saturday, at the First Metro Investment Hub (Unit 1515 Ayala Tower One and Exchange Plaza, Ayala Avenue, Makati City), from 10am to 5pm.
Less than 10 seats are still available. While the link is accessible, you can still buy your ticket at a 40% discount.
I’ll teach you my, thus far, most optimized strategy in short-term trading and long-term investing, which I’ve harnessed for the past 19 years, from stock selection to execution of plans.
I’ll divide it into 6 lessons.
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
Last Price: 228.00
Most Traded: 225.6 – 226.8
Most Voluminous: 226 – 227
The dominant range is closer to the intraday high than the intraday low. This is an additional point for the probability to see a continuation of the ascent in price this afternoon. But let’s not be so sure yet. In the past few days, several stocks were force-closed either at their intraday high or intraday low during the market run-off period (3:20pm to 3:30pm).
True Market Sentiment
True Market Sentiment of JFC as of Aug-14-2019 at 12:00PM, with a last price of 228.00.
7 of the top 10 brokers registered a positive Net Amount
8 of the top 10 brokers registered a higher Buying Average than Selling Average
True Market Sentiment: BULLISH
Top 10 Players’ Buying Average: 226.1733
Top 10 Players’ Selling Average: 225.7301
10 out of 62 participants or 16.13% of all participants registered a 100% BUYING activity
21 out of 62 participants or 33.87% of all participants registered a 100% SELLING activity
I like the mood of the top 10 players today. They were snubbing the dips for the past few trading days until today. If you’re one of my avid readers, you must have noticed already that I am using my proprietary True Market Sentiment indicator to gauge the mood of the top 10 brokers. This is how I know if they have a significant interest in buying the dips or not.
You know that I’m a passionate critic of those who do peso-cost averaging, strategic averaging method, or however you want to call it. At the end of the day, these paraphrased versions of “peso-cost averaging” are still “peso-cost averaging” methods that rely on a Buy Below Price and a pre-defined Target Selling Price.
I wish I can spoil the seminar by discussing Lesson # 6 in this article, but those who paid for their ticket might raise an eyebrow when I meet them this Saturday in Makati. I’ll hold the horse for now to be fair to them.
Did you buy JFC when it was above 300? Did you chose to hold it with a bleeding hand even when it broke below 220 yesterday? You should have exited when your trailing stop loss got hit. I know, for most of you, your problem is the trailing stop loss. How can you sell at your trailing stop loss when you don’t even know what the heck is a trailing stop loss, why you need it, and how to calculate it. This is one of the topics I discuss in Lesson # 6 of my The Evergreen Strategy in Trading the Philippine Stock Market seminar.
I wrote 3 analyses of JFC in the past few trading days. I suggest you read them all. You might pick a new lesson or two.
August 6, 2019: JFC Technical Analysis: Buy Now or Wait Between 200 and 220?
August 9 2019: Jollibee Technical Analysis: Buy If You Are Colorblind
August 13, 2019: JFC Technical Analysis: Hello, Jollibee, Goodbye?
If you do not have JFC yet but are planning to do a test-buy, please remember that while my Momentum Power Indicator is bullish, my 10SMACD combo remains bearish. JFC still has a moderate risk level based on its historical volatility score.
You should only pursue your plan of doing a test-buy under two conditions. The first one is that you should be an experienced and a disciplined trader. The second one is the criterion that you will learn in Lesson # 5 of The Evergreen Strategy in Trading the Philippine Stock Market seminar. Those who already attended this seminar, please check the latest handouts I sent. The answer is in your handouts.
Should you decide to enter a new position on JFC within the dominant range this afternoon, make sure that you calculated your reward-to-risk ratio and you’re satisfied with it first. Otherwise, it doesn’t make sense entering a new position in any stock with a reward-to-risk ratio that’s not attractive to you. Don’t be an impulsive trader. Be data-driven any time and all the time.
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