PPG Technical Analysis: Is It Positioning to Fill the Gap Down?

PPG Technical Analysis

PHINMA Petroleum and Geothermal, Inc. (PPG) closed at 10.36 per share, up by 13.22 percent, as of 12PM of August 23, 2019.

Foreign investors are quite conservative on PPG today since they’ve only registered a Net Foreign Buying worth P390,056.00. The foreign fundies are net sellers YTD, although, again, their participation on PPG is not on a significant level. Personally, I am not factoring in foreign investors’ stance on PPG in my overall sentiment for this stock.

PHINMA Petroleum and Geothermal, Inc. (PPG) - Daily Chart 12PM - 8.23.2019

PPG’s immediate support is near 7.20, which is almost in confluence with the 61.8 percent retracement of the Up Fibonacci, as a precursor to 5.30, which is in confluence with the 38.2 percent retracement of the Up Fibonacci.

With my Up Fibonacci’s swing low positioned near 2.90 and its swing high stationed near 9.10, the psychological resistance of PPG is near 12.90, which is in confluence with the 61.8 percent extension of the Up Fibonacci.

My 10SMACD combo is valid. This was first achieved on August 22, 2019.

So if you are a subscriber of Equilyst Analytics or if you attended The Evergreen Strategy in Trading and Investing in the Philippine Stock Market seminar, you may have already done a test-buy on PPG yesterday since the Momentum Power Indicator was also bullish yesterday.

Please note that RSI is already playing inside the classical overbought level. This doesn’t mean PPG won’t go any higher than where it is at the moment, but, usually, this RSI score invites the appetite to lock-in profits.

If you’re using a trailing stop loss, just like what I teach in Lesson # 6 of The Evergreen Strategy in Trading and Investing in the Philippine Stock Market seminar, you should be fine.

Please brush up on the handouts I sent you because there’s a condition as to when you should adjust the percentage of risk applied in calculating your initial trailing stop loss if and when signs of a weakening upward momentum are spotted.

The risk level of PPG is already extremely high based on the historical volatility score. This is not an ideal stock for relatively new traders.

Trade-Volume Distribution

Last Price: 10.36
VWAP: 11.28154051
Most Traded: 10.6 – 11
Most Voluminous: 11.8 – 11

PHINMA Petroleum and Geothermal, Inc. (PPG) - Trade Volume Distribution 12PM - 8.23.2019

The dominant range of PPG is between 10.00 and 11.00. Technically speaking, especially if we’re going to be very strict about it, I’d say that this is parked closer to the intraday low than the intraday high.

So watch your trailing stop loss very well, especially now that the RSI is in the classical overbought level already.

True Market Sentiment

True Market Sentiment of PPG as of Aug-23-2019 at 12:00PM, with a last price of 10.3600.
3 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: 11.3339
Top 10 Players’ Selling Average: 11.3158
Bonus Info:
6 out of 81 participants or 7.41% of all participants registered a 100% BUYING activity
12 out of 81 participants or 14.81% of all participants registered a 100% SELLING activity

With this bearish mood of the top 10 brokers as of the first half of trading, I’d say that there was no interest to buy the intraday dips.

PHINMA Petroleum and Geothermal, Inc. (PPG) - True Market Sentiment 12PM - 8.23.2019

Recommendations

I have already mentioned some of my recommendations above, but to add a little bit more, I’d say that you should wait for the Momentum Power Indicator to become bullish again before you decide to do a test-buy (to enter a new position).

Right now, my Momentum Power Indicator for PPG is bearish.

Now, if you have PPG and it is still trading above your trailing stop loss, I suggest that you adjust the percentage of risk applied to your trailing stop loss already. I have spotted signs of a weakening upward momentum. Do you see the height of the last volume bar? Take note, it’s just the first half of trading.

I’d like to invite you to my live learning event. I’ll teach you the A to Z of what I do in the stock market, which is applicable when you do short-term trading and long-term investing.

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

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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