Contents:
- Overview
- Hybrid 10-Step Trading Strategy Analysis
- Conclusion
Overview
AyalaLand Logistics Holdings Corp. (ALLHC) remains in a bearish trend, with the price struggling below the 200-day moving average (1.88) and facing immediate resistance at 1.70 - 1.75. The 20-day moving average (1.67) is acting as a short-term barrier, while support is forming at 1.60 - 1.65. Although there are minor signs of stabilization, bullish momentum remains weak, and a break above 1.75 with volume is necessary to consider a potential trend shift. Otherwise, a continuation towards 1.60 - 1.55 remains likely, making short trades at resistance the more favorable setup.
ALLHC’s January 22, 2025, daily chart shows signs of stabilization, with key resistance at 1.75 and support near 1.60.
Market State & Trend Context (Step 1)
ALLHC is in a long-term downtrend, with price action showing lower highs and lower lows since November 2024.
- The 200-day moving average (1.88) is significantly above the price, indicating an extended downtrend.
- The 20-day moving average (1.67) is currently acting as a short-term resistance zone.
- The stock is attempting to stabilize around the 1.65 - 1.70 range, suggesting possible bottoming behavior.
Position, Location & Key Retracement Zones (Step 2)
- The price is below both the 20-MA and 200-MA, confirming overall weakness.
- Key resistance is near 1.70 - 1.75, aligning with the recent price rejections at the 20-MA.
- Support is forming at 1.60 - 1.65, where recent price action has seen buyers stepping in.
- A retracement attempt towards 1.75 - 1.80 would be a critical test for bullish momentum.
Power Bars & Retracement Strength (Step 3)
- The last few candles show low volatility, indicating indecision.
- No strong green power bars have emerged to confirm bullish conviction.
- A sustained break above 1.70 - 1.75 with volume would signal early trend reversal potential.
Entry with Confirmation from Both Strategies (Step 4)
- Short entries remain viable if the price gets rejected near the 1.75 zone, aligning with the downtrend structure.
- Long trades require confirmation, such as a strong green candle above 1.70 with higher volume.
Tactical Stop-Loss Adjustments (Step 5)
- For shorts, stop-loss should be placed above 1.80, where a trend shift might occur.
- For longs, a stop-loss near 1.60 ensures protection against breakdown risks.
Color Change as a Secondary Confirmation (Step 6)
- The recent green candle at 1.68 suggests minor buying interest, but it lacks strong follow-through.
- A clear color change to green above 1.70 with volume would provide a bullish signal.
Profit-Taking Aligned with Retracement Targets (Step 7)
- For shorts, taking profits at 1.60 - 1.55 ensures gains within the downtrend.
- For longs, exits should be planned near 1.75 - 1.80, where major resistance exists.
Re-Entry at Secondary Retracement Pullbacks (Step 8)
- A re-entry opportunity for bulls would appear if price pulls back to 1.60 and holds.
- A failed breakout above 1.75 could offer another short entry for bearish continuation.
Tactical Position Management (Step 9)
- Smaller position sizes are recommended due to low trading volume and uncertain trend direction.
- If price reclaims 1.80 with conviction, increasing long exposure could be considered.
Counter-Trend Trades Only When Retracement Fails (Step 10)
- A counter-trend long trade is only justified if price stabilizes above 1.75 with strong bullish power bars.
- Until then, the bearish bias remains dominant, and short trades at resistance remain the safer option.
Conclusion
The January 22, 2025, daily chart of ALLHC shows bearish conditions, but the stock is attempting to stabilize around 1.65 - 1.70. A break above 1.75 with volume could signal a potential trend reversal, while rejection at this level favors continued downside moves. Traders should wait for confirmation before committing to long positions.
Disclaimer: This post is for informational purposes only and should not be considered financial advice. Always do your own research before making any trading decisions.
Related Readings
- Micro Stock Trader: Comparing the Modified 10-Step Trading Strategy vs. Retracement Trading Strategy
- Micro Stock Trader Portfolio Tracker Page
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