Tuesday, January 28, 2025

Stock Price Review: Premiere Island Power REIT (PREIT) Daily Chart as of January 28, 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) has been consolidating within a narrow range, hovering around the 50% pullback level (₱2.20) for an extended period. The morning session chart of January 28, 2025, with our annotations, suggests that PREIT is attempting to break out of this consolidation. This analysis will determine if a buy, sell, or hold position is most suitable 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 28, 2025 (Morning Session)
  • Closing Price: ₱2.24
  • High: ₱2.24
  • Low: ₱2.15
  • 20-MA (Short-Term Trend): ₱2.19
  • 200-MA (Long-Term Trend): ₱1.99
  • Key Pullback Levels:
    • 100% Pullback: ₱2.40
    • 50% Pullback: ₱2.20
    • 0% Pullback: ₱2.00

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

PREIT Daily Chart with technical indicators and retracement levels

PREIT Stock Price Review – Analyzing Buy or Sell Signals with the Hybrid 10-Step Strategy (Morning Session, January 27, 2025)


Hybrid 10-Step Trading Strategy Review

Step 1: Identify Market State & Trend Context

  • PREIT is in a sideways consolidation phase, fluctuating between ₱2.00 and ₱2.40.
  • The price is above the 200-day MA (₱1.99), confirming an overall bullish trend structure.
  • The 20-day MA (₱2.19) is flattening, indicating lack of strong momentum.
  • Recommendation: BUY / HOLD – The stock remains in a consolidation, and a breakout above ₱2.25-₱2.30 is needed for a stronger buy signal.

Step 2: Price Position & Retracement Zones

  • PREIT is currently hovering near the 50% pullback level (₱2.20), which serves as a pivot zone.
  • A sustained breakout above ₱2.25 could push the stock toward the 100% pullback level (₱2.40).
  • Recommendation: BUY / HOLD – A breakout confirmation is required for momentum.

Step 3: Power Bars, Breakout Signals & Volume Confirmation

  • The recent candles indicate an increase in bullish strength, with higher lows and higher closes.
  • Volume remains relatively low (55K), meaning a breakout still lacks strong conviction.
  • Recommendation: BUY / HOLD – If volume increases on an upward move, a breakout play is validated.

Step 4: Entry Confirmation Based on Technical Signals

  • A buy signal will be confirmed if price breaks above ₱2.25 with strong volume.
  • A failure to hold ₱2.20 could push PREIT back to ₱2.00 support.
  • Recommendation: BUY / HOLD – Conservative traders should wait for confirmation.

Step 5: Stop-Loss Positioning & Risk Management

  • If entering at ₱2.22 - ₱2.25, a stop-loss should be placed below ₱2.15.
  • Risk-reward favors a move toward ₱2.40 (resistance) with downside limited to ₱2.00.
  • Recommendation: BUY / HOLD – Stop-loss discipline is essential.

Step 6: Color Change Signals for Additional Confirmation

  • The last few candles show bullish attempts, but there is no strong confirmation of trend acceleration yet.
  • Recommendation: BUY / HOLD – Monitor for a strong green power bar.

Step 7: Profit-Taking Strategies with Tactical Exits

  • Short-term traders can take partial profits at ₱2.30 - ₱2.40.
  • A full exit is recommended if price struggles to hold above ₱2.25.
  • Recommendation: BUY / HOLD – Tactical profit-taking near ₱2.40 is advisable.

Step 8: Potential Re-Entry Zones

  • If a breakout fails, a re-entry at ₱2.00 - ₱2.05 would provide a better risk-reward setup.
  • Recommendation: WAIT FOR A DIP IF NO BREAKOUT OCCURS – Avoid chasing if volume remains weak.

Step 9: Tactical Position Adjustments (Position Sizing Strategy)

  • Core position: 50% size at ₱2.20-2.25, if a breakout is confirmed.
  • Tactical add-on: 10% size above ₱2.30, if volume strengthens.
  • Recommendation: BUY / HOLD – Manage positions based on breakout strength.

Step 10: Counter-Trend Trading Considerations

  • Counter-trend trades are not applicable in this setup.
  • Recommendation: STICK TO THE TREND – Trade only on breakout confirmation.

Final Trade Recommendation

Final Trade Recommendation: BUY / HOLD

✅ Recommendation: Buy on breakout above ₱2.25, or hold if already positioned. Avoid buying if volume remains weak.

✅ Risk Management: Stop-loss below ₱2.15 to limit downside risk.

✅ Profit-Taking Strategy: Target exits at ₱2.30 - ₱2.40 for short-term trades.

✅ Position Size Strategy: Enter moderate size, adding more only above ₱2.30 with volume confirmation.

Next Steps

🔹 Short-term traders → Buy only if price clears ₱2.25 with strong volume. Target ₱2.30 - ₱2.40.

🔹 Long-term investors → Hold as long as ₱2.00 support remains intact.

🔹 Existing holders → Partial profit-taking recommended near ₱2.40.

🚨 Final Thought: PREIT is testing a breakout zone. Watch for volume confirmation above ₱2.25 before committing to 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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