Let’s give a round of applause to Masigasig IH for being this week’s Featured Trader!
Masigasig IH joined Investagrams in 2017, making this his fifth year within the community. He has been very active and is consistently providing value to the Investagrams community through consistently sharing his own stock picks and chart analysis.
Just last week, one of Masigasig IH’s picks broke out and gained a lot of momentum. PSE:DITO, or DITO telecommunity, is the Philippines’ third telecommunications service provider after it won the bid last 2018.
Masigasig IH was eyeing PSE:DITO while it was forming a new higher high and higher low. Using technical analysis, one can see that the area around 6-6.5 was a big supply area. The stock was previously in a downtrend and was continually making lower lows. The moment it breached the pattern of continuous lower highs and lower lows, a lot of traders paid attention to this stock as it could be a sign of a reversal.
TECHNICAL STANDPOINT
Right after the first higher low, PSE:DITO gained a lot of traction as volume shot up along with a strong impulse candle to break out of the immediate short-term resistance. This was only halted recently as it hit into the next resistance point near the psychological level 7. Although there wouldn’t have been a big upside for momentum and breakout traders, swing saw the most benefit from this play as a swing trade here would have provided a swift trade with around an 18% to 20% gain.
Not giving in to FOMO – what to do next?xx`
With how PSE:DITO is currently moving, it seems that swing trades are the ideal types of trades for now as the stock is just forming higher highs and higher lows below major resistance levels. Trend followers and momentum traders on the other hand would more likely be in a wait and see mode as there is no clear indication of a strong and long uptrend coming. Whatever the case, managing risk should always be the main priority by any kind of trader looking to buy into this stock.
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FUNDAMENTAL STANDPOINT
Being the third telco provider in the Philippines, DITO was hyped up to be the competitor that would go against Smart and Globe. Although it has gotten to a slow start, DITO has already rolled out its mobile and 5g wireless broadband services across more than a hundred cities. In order to further expand their reach, they have already started building new cellular towers around the country. It might take a while for the financial numbers to show good growth, but it seems investors are anticipating that DITO will be able to make use of its position in order to benefit from the rising demand in 5g mobile data and broadband services.
Once again, KUDOS to Masigasig IH for being this week’s Featured Trader! Enjoy your 14-day InvestaPrime Access and continue to be an inspiration to the trading community.
