The Trading War Room (August 13, 2019)

Annyeong! So this week’s PSE has been bloody so expect these series of stock analyses to be focused more on potential outliers rather than blue chips (except for probably one because it was the most traded today 😂)

The PSEI’s current bias for today is still bearish for the week, but we notice the candle being pushed up showing hints of bullish activity.
From an hourly standpoint we observed that the PSEI for the last hour of trading day did a bullish run as observed from the last candle before closing.

On a personal note, I’m not that open to any breakout or momentum plays yet so I would be focusing more on possible bounce plays for this series.

Disclaimer again: I am not a fan of bounce plays but I find ways to play them anyway. This might be a good time to practice trading them (with low volume allocation of course 😂)

Let’s begin!

$ALCO

This stock dropped to almost 9% today but observing the market depth at closing, we are observing a large amount of volume lining up at around 0.90 thus speculating a psychological support in that area.

Take note that the price is currently below EMA 50 as well.

Expecting a probability that it might revisit the 0.90 area tomorrow.

The price actually closed above 0.90 despite the bearish candle

Support Area 1: 0.84 – 0.90

Support Area 2: 0.71 – 0.84

Resistance Area: 1.00 – 1.21

Possible Reward: 10 – 30%

$NIKL

This stock dropped to 6% today but as seen on the chart, the price is trying to bounce off EMA 50.

Market depth suggests at closing that there are possible psychological supports at 2.40 and 2.41.

A quick swing trade might be suitable for this stock.

Caveat if it breaks down further.

The price filled the gap at 2.43 but closed at 2.41

Support Area 1: 2.30 – 2.36

Support Area 2: 2.09 – 2.30

Resistance Area: 2.67 – 2.78

Possible Reward: 8 – 18%

$FLI

This stock tried to hold 1.70 but failed to do so resulting in a close at 1.68.

Possible scenarios tomorrow would either be a breakout from MA 100 or a test bounce from MA 200.

Pay attention to the 1.75 level because it’s currently acting as a temporary resistance

Support Area: 1.50 – 1.66

Resistance Area: 1.99 – 2.05

Possible Reward: 10 – 28%

$MEG

Today, this stock was traded over 10,000 times…damn.

Yep, you read that right…10,000 TIMES! 😨😨😨

This stock closed above MA 200 but since the price opened with a gap down, there’s a strong possibility in might drop lower.

On the other hand, if the index tomorrow shows a bullish mood it’s also possible that it can do a 1-day reversal to fill the gap tomorrow (hello quickie swing if ever, but better if it breaks 5.90 then closes above 6.00 🤣🤣🤣)

MA 200 bounce might be possible but given the gap down, the chances are slim.
The 15-minute time frame is suggesting that it might to a Parabolic SAR breakout.
Good to watch. *grabs popcorn*

Support Area: 4.95 – 5.40

Resistance Area: 5.90 – 6.54

Possible Reward: 8 – 20%

Good luck trading wanderers!

Your Trading Poet,

Alex Corner

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