Our featured trader of the day is basing his trades on price and and trend analysis! Let’s give a round of applause and congratulate our featured trader of the week @jrebong!
Ray Dalio once said that “In trading, you have to be defensive and aggressive at the same time. If you are not aggressive, you are not going to make money, and if you are not defensive, you are not going to keep the money.” In the case of @jrebong, he believes that an entry of trade using TA is a must as it helps him to be more successful in terms of trading accuracy.
@jrebong has been a member of the Investagrams community since March 2016 and has been very active and sharing his trades.
A couple of weeks ago, our featured trader posted his technical analysis on $ABA. A hot stock in the local market and a key player in the mining industry locally. $ABA recently surge with a whopping positive close at 2.36 with 7.76%.
As the stock recently reached a 52-wk high at 2.36. @jrebong charted its support, volume, and resistance, on the chart, bound for a breakout in its trendline as he believes in its technical analysis. @alphatraderph felt an opportunity to have a good entry near the support and HOLD for a while.
TECHNICALS OF THE TRADE
In sequence 1, our featured trader charted RSI, MA, EMA, Volume and Stoch. Furthermore, as $ABA recently reached 52-wk high at 2.36 area. It is further to move up more and retest at 2.5 and 2.6 onwards before it pullback or retest in the 2.2-ish area. It’s RSI is overbough already but this will matter whether it will surge or pull back in the next few weeks. It’s MA remained uncrossed as it surges. ABA’s chart looks good in the market as local and foreigners are jumping in with the stock. The support of this stock is at 2.2 and 2 area. It’s resistance remained unknown since ABA closed at 52-wk high. While other mining stocks are falling, ABA remained strong and break its previous resistance and closed at 52-wk high. On the next sequence of the photo, our featured trader urges local and foreigners to ride in as it breaks out. He assumes that it will further surge and might be profitable for trading. Furthermore, it is best to observe technical indicators as ABA remained a hot topic recently.
@jrebong was confident that this stock will further surge as he indicated in sequence 1 photo that this stock might be explosive. Explosive meaning that the stock will surge and will further break resistances. He did not charted support and resistances. However, he remained positive for this stock as he is obviously aware that it is overbought already and might be retesting in the next few weeks. Further to that, he is encouraging fellow traders to ride-in as he believes that ABA will further surge more.
FUNDAMENTAL CATALYST
AbaCore Capital Holdings, Inc. is a holding company whose shares are listed and traded in the Philippine Stock Exchange (trading symbol: ABA). At present, AbaCore Capital Holdings, Inc. has interests in the leasing of gaming equipment, gold and coal mining, real estate and financial services.
As of September 02, 2022, the ABA closed at 2.36, 52-wk high. ABA remained underrated for some as book value per share of ABA is at 3.5 2Q 2022. Further to that, ABA is engaged with the businesses above. Furthermore, its key indicators are the following: return on assets, return on equity, earnings per share, current ratio, debt-to-equity ratio.
Return on assets: 0.09%
Return on equity: 0.10%
EPS: 0.0025%
Current ratio: 2.817:1
Debt to equity ratio: -1.39:1
The ability to pay for a company to its debts plays a vital role for each company. Based on the financial indicator of ABA, this will depend on you whether you will invest or not. Furthermore, ABA remained speculative for some and an ideal for some. Based on its financial statement and key indicators, it is some how doubtful for investors to ride in with ABA as its financial statement is doubtful for some. It is best to observe what will ABA will do in the next few weeks (For its TA and FA)
WHAT SHOULD BE MY NEXT MOVE
As the stock recently 52-wk high, it would be wiser to observe and wait for what $ABA might do next before jumping in. This stock is speculative since the industry right now is a much more focused industry by the national government. In terms of trading, the demand from consumers is continually growing. However, it’s best to wait for a consolidation, pullback, or a good entry near its support for a better risk-to-reward ratio. It would also be advisable to trade lightly and in tranches given that we’re not yet out of the woods.
Once again, KUDOS to @jrebong 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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