Friday, January 31, 2025

Stock Price Review: Premiere Island Power REIT (PREIT) Daily Chart as of January 30, 2025 – Buy or Sell Decision Using the Hybrid 10-Step Strategy

Contents:

  • Introduction
  • Hybrid 10-Step Trading Strategy Review
  • Final Stock Recommendation
  • Next Steps

Introduction

Premiere Island Power REIT Corporation (PREIT) experienced a sharp -6.22% decline, closing at ₱2.11 during the January 30, 2025 session. This selloff pushed the stock below the 20-day moving average (₱2.19) while remaining above the 200-day moving average (₱1.99), signaling increasing downside risk. The sudden drop raises questions about whether PREIT presents a buy, sell, or hold opportunity based on our Hybrid 10-Step Trading Strategy.

Trade Details

  • Stock: Premiere Island Power REIT Corporation (PREIT)
  • Exchange: Philippine Stock Exchange (PSE)
  • Timeframe: Daily Chart
  • Date: January 30, 2025 (Closing Session)
  • Closing Price: ₱2.11
  • High: ₱2.23
  • Low: ₱2.11
  • 20-MA (Short-Term Trend): ₱2.19
  • 200-MA (Long-Term Trend): ₱1.99
  • Volume: 73K (low liquidity and declining participation)

This review follows our Hybrid 10-Step Trading Strategy for a structured assessment.

PREIT Stock Price Review – Analyzing Buy or Sell Signals with the Hybrid 10-Step Strategy Daily Chart as of January 30, 2025


Hybrid 10-Step Trading Strategy Review

Step 1: Identify Market State & Trend Context

  • PREIT has shifted into a short-term downtrend, breaking below the 20-day MA (₱2.19) for the first time in several weeks.
  • The 200-day MA (₱1.99) remains intact, meaning the long-term trend is still bullish, but momentum has weakened.
  • A break below ₱2.10 could trigger further selling toward ₱2.00 or lower.
  • Recommendation: SELL / WAIT – The stock has lost momentum, and caution is warranted.

Step 2: Price Position & Retracement Zones

  • The key support zone is now at ₱2.00, aligned with the 200-day MA.
  • Resistance has shifted to ₱2.19 (20-day MA) and ₱2.25, which must be reclaimed for bullish confirmation.
  • Recommendation: SELL / WAIT – A recovery above ₱2.19 is needed before considering longs.

Step 3: Power Bars, Breakout Signals & Volume Confirmation

  • The latest red candle is a strong bearish power bar, indicating a potential breakdown.
  • Volume remains low (73K), meaning there is no strong buying support at current levels.
  • Recommendation: SELL / WAIT – No breakout signals or momentum shifts are present.

Step 4: Entry Confirmation Based on Technical Signals

  • No buy signals are present, as the stock is trading below the short-term trend.
  • A recovery above ₱2.19 would be the first sign of strength.
  • Recommendation: WAIT – Entering at current levels is too risky.

Step 5: Stop-Loss Positioning & Risk Management

  • If holding a long position, a stop-loss should be placed below ₱2.00.
  • If PREIT breaks ₱2.00, the next downside target is ₱1.85-₱1.90.
  • Recommendation: SELL / WAIT – Reducing risk exposure is advised.

Step 6: Color Change Signals for Additional Confirmation

  • No bullish reversal signals have appeared.
  • Recommendation: SELL / WAIT – Look for a green power bar before entering.

Step 7: Profit-Taking Strategies with Tactical Exits

  • Short-term traders should consider exiting positions if PREIT fails to recover ₱2.19.
  • The next profit-taking level would be ₱2.25-₱2.30 if recovery occurs.
  • Recommendation: SELL / WAIT – A bounce may offer a better exit opportunity.

Step 8: Potential Re-Entry Zones

  • Ideal re-entry would be near ₱2.00, where the 200-MA offers support.
  • A break below ₱2.00 would mean waiting for stabilization at ₱1.85-₱1.90.
  • Recommendation: WAIT FOR CONFIRMATION – No immediate re-entry is advised.

Step 9: Tactical Position Adjustments (Position Sizing Strategy)

  • New buyers should avoid full-sized positions until confirmation emerges.
  • Recommendation: HOLD CASH / WAIT – No need to take unnecessary risks.

Step 10: Counter-Trend Trading Considerations

  • A counter-trend trade is not advisable until volume increases significantly.
  • Recommendation: WAIT FOR A CONFIRMED TREND REVERSAL – The risk remains high.

Final Trade Recommendation

Final Trade Recommendation: SELL / WAIT

✅ Recommendation: Sell or reduce exposure while below ₱2.19. Re-enter only if price stabilizes at ₱2.00 or reclaims ₱2.19 with volume.

✅ Risk Management: Set a stop-loss below ₱2.00 to protect against downside risk.

✅ Profit-Taking Strategy: Short-term traders should exit on any relief rally to ₱2.25-₱2.30.

✅ Position Size Strategy: Avoid aggressive buying until a trend reversal is confirmed.

Next Steps

🔹 Short-term traders → Avoid buying until a strong bullish reversal emerges above ₱2.19.

🔹 Long-term investors → Hold only if ₱2.00 support remains intact.

🔹 Existing holders → Consider reducing exposure on failed recovery attempts.

🚨 Final Thought: PREIT has lost momentum and risks further downside if ₱2.00 fails. Patience is key—wait for confirmation before entering new 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.


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