The Responsible Trader

JFC  (JOLLIBEE FOODS CORPORATION ) – NOVEMBER 25, 2019

TRADING GUIDANCE FOR NEWBIES WHO NEED HAND-HOLDING WHILE LEARNING TO TRADE INDEPENDENTLY

Many are now raring to buy JFC seeing it  as a once-in-a-lifetime opportunity to own the stock. I have also been asked by readers of my books about how  they are going to apply the things that they have learned in connection with this stock.

Since this is a trading guidance for newbies, please allow me to walk you through the procedures as outlined in my books.

Before we prepare our Trading Plan let us first establish our Trade Setup.  JFC hit its 52-week low of 186.20 yesterday, November 25, 2019 and there is still a strong downward momentum so we have to determine potential reversal area. To do this we use Fibonacci Extension as explained in Chapter 1, Section 9 of my first book “”The Responsible Trader – a Thinking Person’s Guide for Trading the Philippine Stock Market.”

Fibonacci Extension is used to determine possible profit taking points in an Uptrend and in projecting probable points where the price could drop further in a Downtrend. For Fibonacci Extension we are looking at three points.

1. The Point of Origin – this is where the price move has started and is called Swing Low in case of an Uptrend and Swing High In case of a Downtrend.
2. The Point of Projection – this is the closest Swing High in an Uptrend or Swing Low in a Downtrend that is used as a basis for making the projection.
3. The Point of Termination – Unlike in Fibonacci Retracement, where we end with the Swing High in an Uptrend and the Swing Low in a Downtrend, this time the point of termination is the closest Higher Low in an Uptrend and the closest Lower High in a Downtrend.

For JFC since it is on a Downtrend we use the January 28, 2019 Swing High of 328.40 for our Point of Origin, the July 25, 2019 closest Swing Low of 231.00 as our Point of Projection and the August 21, 2019 closest Lower High of 260.00 as our Point of Termination.  As shown in Figure 1, Potential Reversal Points are 183.44 (0.786 Fibo) and 162.60 (1.00 Fibo).

Looking back, we can see that along the same area, the stock bounced last December 22, 2016 and March 27, 2017 as indicated in Figure 2.

For me,  I it is not yet time to take the  trade and it is best to observe what happens next. The stock is now at its critical area. A bounce at this level could signal a Trend Reversal and a break of this Support at 183.44  could drive the stock down  to its next Support of 162.60.

Good luck on all your trades.

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In line with our VISION, A RESPONSIBLE TRADER IN EVERY FILIPINOS HOME, we aim to continue promoting financial literacy on the area of stock market trading and investing to our countrymen both here and abroad through the following:

1. We have successfully launched “Swing Trading with TRT – a Definitive Guide for Swing Trading the Philippine Stock Market” last September 2, 2019. This book is the second in our Responsible Trader Education Series.

You can download Chapter 1 and see the Table of Contents here: https://drive.google.com/file/d/1NZEABnQMiQ_zenEMs0lPFWweX4WBxBHg/view?usp=sharing

The first book, “The Responsible Trader – a Thinking Person’s Guide for Trading the Philippine Stock Market” provided all the basic knowledge that a trader needs to know in order to trade the Philippine Stock Market effectively and efficiently. The first book is about the basics. This second book is about the specifics.

2. The Book: “The Responsible Trader – a Thinking Person’s Guide for Trading the Philippine Stock Market” now earned the name “The Bible of Philippine Trading.” You can download Chapter 1, Section 1 of the book here: http://theresponsibletrader.com/the-responsible-trader-hope-for-trading-knowledge-test/. For those interested in the hard copy, please send email to: ninjatrader919@gmail.com Subject: The Responsible Trader – Hard Copy.

As requested by those abroad and those who want the book in digital form, we have produced an eBook version. For those interested please send email to: ninjatrader19@gmail.com Subject: The Responsible Trader – eBook Version.

The book can also be ordered online through our publisher, Central Book Supply. Just go to: http://central.com.ph/bookstoreplus then click Search – The Responsible Trader.

3. The Website: :http://www.theresponsibletrader.com where we publish our daily newsletter Top Ten Smart Money Moves, Stock Trading Lessons, and Inspirational Materials. (FREE)

4. The YouTube Channel: https://www.youtube.com/theresponsibletrader – where you can learn the course “Master’s Certificate in Technical Analysis” which was simplified in an easily understood manner. You can download these videos and learn them at your own convenient time. (FREE)

5. My Slideshare: http://www.slideshare.net/TheResponsibleTrader – where you can view and download copy of the Powerpoint Presentation of my TRT-POV (The Responsible Trader’s Point of View) of the videos posted in our Youtube Channel. (FREE)