In a quote by Arian Adeli Koodehi, he says “A successful trader must learn to be a good loser before he can start winning.” Losing in the market is part of the journey in becoming a successful trader. From your losses, learn where you went wrong and make sure not to do it again. Create strategies that will guide you in trading, and most importantly, continue to learn more each day.
@Poizonous takes the spotlight for this week’s featured trader as he shares his knowledge with us on the PSEI market! Let’s take a look at how @Poizonous uses this to his advantage.
@Poizonous shared his thoughts on $PX and its potential course of action by utilizing technical analysis.
Let’s take a look at @Poizonous view on $PX. As we can see, he plotted out a moving average indicator which is used to help smooth out price data by creating a constantly updated average price. In this case, it is a MA50, meaning it takes data from the last 50 days. Next we can see an RSI, a momentum indicator, which tells us whether or not a stock is overbought (above 90) or oversold (below 30). Additionally, a chart pattern known as a “Head & Shoulders Pattern,” which is said to represent a bullish-to-bearish trend reversal and indicate that an upward trend is about to come to an end, is shown. It is regarded by investors as one of the most accurate patterns for trend reversals.
TECHNICALS OF THE TRADE
Technically, $PX at the time was trading in an uptrend. It has just recently gone above MA50, indicating that it had potential to push its price even higher. Moreover, we can see that the MACD showed no signs of reversing. The RSI was above 50, but not over 90, indicating that it still had more potential to push its price right up. Lastly, take note of the inverted head and shoulder pattern which was spotted by @Poizonous. This indicator signals that the stock is headed towards a bullish direction.
Through the analysis of @Poizonous, a successful trade was made, earning him around 8-10% in profits!
FUNDAMENTALS OF THE TRADE
Due to lower copper prices and metal output, Philex Mining Corp.’s core earnings fell by 17% to P1.54 billion from January to September of this year, compared to P1.86 billion during the same period last year.
According to disclosure made to the Philippine Stock Exchange (PSE) , Philex’s net income decreased by 12.9% to P1.64 billion over the course of the first nine months of this year from P1.88 billion the previous year.
WHAT SHOULD BE MY NEXT MOVE
Looking at the current state of $PX, it is advisable not to buy yet, but instead wait for price to drop. As of today, the price of $PX is closing in into the PHP3 resistance meaning that it could start going down from there. Additionally, the RSI has touched 90 levels, indicating that it is overbought and holders might sell their positions any time soon.
It’s best to wait for a pullback or buy during the PHP3 breakout. If you are holding $PX right now, selling even a quarter of your position would be a good choice in order to protect gains.
With all the data gathered, it is best to plan your trades in advance by keeping up with the latest $PX news and market demand for minerals. Make use of both fundamental analysis and technical analysis. By exercising diligence, you can develop into a profitable trader!
Once again, KUDOS to @Poizonous for being this week’s featured trader! Enjoy your 14-day InvestaPrime Access and continue to be an inspiration to the trading community.
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