Contents:
- Trade Details
- Hybrid 10-Step Trading Strategy Review
- Final Trade Assessment
- Next Steps
Trade Details
- Stock: Semirara Mining and Power Corporation (SCC)
- Exchange: PSE
- Timeframe: Daily Chart (Morning Session)
- Date: January 24, 2025
- Closing Price: ₱36.45
- High: ₱36.50
- Low: ₱36.20
- 20-MA (Short-Term Trend): ₱35.02
- 200-MA (Long-Term Trend): ₱32.99
- Price Movement: Uptrend continuation
SCC Morning Session Chart Analysis – January 24, 2025
Hybrid 10-Step Trading Strategy Review
Step 1: Identify Market State & Trend Context
SCC is currently in an uptrend, with price action above both the 20-day MA (₱35.02) and 200-day MA (₱32.99). The recent price action suggests a multi-bar strength move, indicating bullish sentiment.
Step 2: Assess Price Position Relative to Key Levels
- Price is trading above both moving averages, confirming an established uptrend.
- The 20-MA has a positive slope, reinforcing short-term strength.
- The 200-MA serves as a strong support, indicating a long-term bullish bias.
Step 3: Power Bars & Retracement Strength
- The stock has consistently formed green power bars, showing strong buying momentum.
- No major retracement has occurred, with price holding near recent highs.
- No immediate signs of exhaustion, supporting a continuation bias.
Step 4: Entry Confirmation Based on Retracement Levels
- Since price has not retraced significantly from its rally, an entry at this level might be considered late.
- Ideal entries should be on a pullback to the 33%-50% retracement zones, which is currently not present.
Step 5: Tactical Stop-Loss Adjustments
- If entering now, a tight stop-loss should be placed just below the 20-MA (₱35.02) to minimize risk.
- A more conservative stop would be below ₱34.50, aligning with a minor support area.
Step 6: Color Change as a Secondary Confirmation
- No red candles near key support levels, meaning no immediate reversal signals.
- Price remains above the retracement zones, so there’s no need to be overly cautious yet.
Step 7: Profit-Taking Aligned with Retracement Targets
- Partial profit-taking can be planned near ₱37.00-₱38.00, aligning with resistance zones.
- If price retraces back to ₱35.00, it may offer a re-entry opportunity.
Step 8: Re-Entry at Secondary Retracement Pullbacks
- Given the strong rally, an ideal re-entry zone would be around ₱34.50-₱35.00 if price pulls back.
Step 9: Tactical Position Management
- Larger positions can be taken if price pulls back to a 33%-50% retracement zone.
- If price extends beyond ₱37.00, a trailing stop should be considered.
Step 10: Counter-Trend Trades Only When Retracement Fails
- No counter-trend trades are advisable, as the trend remains intact.
Final Trade Assessment
- SCC is showing strong bullish momentum, with price making higher highs.
- Immediate entry may not be optimal as price has already extended.
- Better entries should be on a pullback towards the 20-MA.
- Profit-taking should be considered near ₱37.00-₱38.00.
Next Steps
- Wait for a pullback before adding positions.
- Monitor resistance levels for potential reversal signals.
- If price breaks ₱37.00 with strong volume, consider holding for further upside.
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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