Jodee a.k.a. @batangtrader29 takes the spotlight for this week’s featured trader as he shares his knowledge to us on stocks from the PSEI.
In a quote by Charlie Munger, he says “The world is full of foolish gamblers and they will not do as well as the patient investors.” By exercising patience, you can avoid responding rashly and making choices that could reduce your chances of gaining money. Additionally, it gives the market’s ups and downs ample time to balance themselves out, ideally leading to earnings that are satisfactory to you. Let’s take a look at how @batangtrader29 uses this to his advantage.
@batangtrader29 gave his thoughts on $ALI and the potential course it might go after price action reached the demand zone.
During this specific trading period, @batangtrader29 has plotted out a rising wedge pattern which typically indicates possible breakdowns in price action. We can also see an RSI, a momentum indicator, closing in its oversold levels (around 30) which typically means a stock is undervalued. Moreover, it also means that it can be a perfect opportunity to buy. The two green boxes that we can see in the chart are known as the demand zone, meaning it is the price area wherein traders usually buy. The 3 gold lines are known as the golden zone which are considered key retracement levels for a stock or an index.
TECHNICALS OF THE TRADE
Technically, $ALI at the time was gaining a downtrend momentum. Five days after his initial post, @batangtrader29 has replied in the comments about where he expected the price to go. Because price has reached the demand zone, he expected massive buying actions around that area. Moreover, if we take a look at the RSI, it is below 30 meaning that it is a great opportunity for many investors to buy. Lastly, if we take a look at the chart pattern, we may notice that it is currently forming a double-bottom pattern. This usually means that there is a huge chance that the price will bounce right back up.
With all the information gathered and collected, @batangtrader29 was able to successfully make a good trade. He was able to achieve the forecast of meeting the rising wedge target as well as the demand zone reaction with bullish divergence. This earned him around 14% – 16% in total gains.
FUNDAMENTALS OF THE TRADE
The first batch of charging stations will be made available in Ayala Land Malls and Estates, according to Ayala Land Inc. ($ALI), which is currently preparing to expand them out across the country’s residences. According to reports, $ALI and the energy platform ACEN Corp. finished baselining their greenhouse gas emissions, including Scope 3 emissions in their value chains.
WHAT SHOULD BE MY NEXT MOVE
In the daily timeframe, $ALI seems to be heading towards a resistance at PHP26. While indicators may seem positive, it is best to wait for the breakout. This allows you to properly execute a trade while at the same time, reduce the risk of having a loss. Moreover, it is best to keep a look out for disclosures on updates about their existing and current projects.
Given this, it is preferable to set aside some cash to buy and hold this stock for the long term.
Additionally, given the state of the market, it would be prudent to buy the dips without expending too much of your money. Always conduct your research and keep abreast of news that is relevant to the stock you have chosen.
Once again, KUDOS to @batangtrader29 for being this week’s featured trader! Enjoy your 14-day InvestaPrime Access and continue to be an inspiration to the trading community.
