The Responsible Trader

STOCK CHARTS AND ANALYSIS –  SMPH

 

In accordance with our Independence Day commitment, following is our Technical Analysis of SMPH (SM PRIME HOLDINGS, INC.)  as of August 11, 2015.

 

This completes our THREE for FREE for this week (Two Non-Index Stocks – DNL and MAXS and this one SMPH – Index Stock).

 

TA – The Responsible Trader’s Way – No Hyping, No Bashing, Just Plain Cold Facts.

 

Positive

1.   Strong uptrendline. Although the stock made several retracements,  it always bounced after hitting P18.79 (50% Fibo).  This level has also been retested several times making it now a very strong support.

2.   Price action above 15 EMA and 20 SMA – Bullish – Short Term. Price action above 15 EMA and 20 SMA shows that the stock is Bullish on the Short Term.

3.   Price action 50 SMA – Bullish – Medium Term. Price action above 50 SMA shows that the stock is Bullish on the Medium Term.

4.  Most price action above 200 SMA – Stock in Bull territory. Even with the sideways consolidation, the stock has remained above the 200 SMA showing the stock has never left the Bull territory.

 

Negative

1.   MACD Bearish Divergence. Although the stock has made a new Higher High, MACD  did not follow suit.

2.   RSI Bearish Divergence. Although the stock has made a new Higher High, RSI   did not behave the same way.

In Responsible Trading, Divergences are considered as probable turning points but never as Buy or Sell signals.  Therefore we always wait for price confirmation before we take a position.

 

NEUTRAL

1.   MACD on Golden Cross but histogram is decreasing. Although MACD is still on golden cross it is showing mixed signals because the histogram is decreasing indicating a possible weakening of the stock’s momentum.

 

NOTES:

1.   Positive points are things that could work in your favor. Negative points are things that you have to watch out for.

2.   On the opposite side of Pattern Targets are Pattern Failures. In case you decide to take this trade, always remember to set a stop loss based on your established risk tolerance level.
The Chart and Analysis is presented for educational purposes only and should NEVER BE TAKEN as a RECOMMENDATION to BUY, HOLD, or SELL.
Please trade with CAUTION, please trade with CARE. As always, IT’S YOUR TAKE, IT’S YOUR CALL. IT’S YOUR MONEY AFTER ALL.

 

Good luck on all your trades.