Contents:
- Introduction
- Hybrid 10-Step Trading Strategy Review
- Final Trade Recommendation
- Next Steps
Introduction
Monde Nissin Corporation (MONDE) experienced a significant decline in January 2025, closing at 6.65, reflecting a -22.67% drop for the month. The stock reached a high of 8.60 before breaking down and closing near its lows. MONDE is currently trading well below the 20-MA (9.13), confirming a continued downtrend with strong selling pressure.
Trade Details:
- Stock: Monde Nissin Corporation (MONDE)
- Exchange: PSE
- Timeframe: Monthly
- Date: January 31, 2025
- Closing Price: 6.65
- High: 8.60
- Low: 6.65
- 20-MA (Short-Term Trend): 9.13
- 200-MA (Long-Term Trend): Not available
Key Pullback Levels:
- 100% Pullback: 12.00 (Strong resistance)
- 75% Pullback: 10.00 (Major rejection area)
- 50% Pullback: 8.00 (Short-term resistance)
- 0% Pullback: 6.00 (Recent support)
This stock price review follows our Hybrid 10-Step Trading Strategy to ensure a structured and comprehensive assessment.
Monde Nissin Corporation (MONDE) Monthly Chart as of January 31, 2025
Hybrid 10-Step Trading Strategy Review
Step 1: Identify Market State & Trend Context
- Long-term trend remains bearish, as price is well below the 20-MA (9.13).
- January’s massive red candle confirms a breakdown, indicating that sellers remain dominant.
- If price drops below 6.00, the next potential support is uncertain.
✅ Market State: Strong downtrend with heavy selling pressure.
🛑 Decision: HOLD – Avoid aggressive buying until stabilization occurs.
Step 2: Price Position & Retracement Zones
- Negative Position: Price remains well below the 20-MA, signaling strong downside momentum.
- Retracement Zone: 6.00 - 6.50 is a key support area that must hold for a potential bounce.
🛑 Decision: HOLD – Watch for stabilization before making new entries.
Step 3: Power Bars, Breakout Signals & Volume Confirmation
- January’s red candle is a power bar to the downside, signaling strong selling.
- Volume was extremely high (174.3M), confirming institutional selling pressure.
🛑 Decision: WAIT – No bullish breakout signals yet.
Step 4: Entry Confirmation Based on Technical Signals
- BUY trades executed at 6.95 (500 shares on January 27), 7.18 (300 shares on January 31), and 7.16 (100 shares on January 31) were placed within the recent support zone.
- Price closed lower at 6.65, which means positions are currently at a drawdown.
🛑 Decision: HOLD – No additional buys until a reversal signal appears.
Step 5: Stop-Loss Positioning & Risk Management
- Stop-loss should be placed below 6.00 to limit downside exposure.
- A breakdown below 6.00 could trigger further declines.
✅ Risk is controlled, but the setup remains weak.
🛑 Decision: HOLD – Manage risk carefully.
Step 6: Color Change Signals for Additional Confirmation
- No green reversal signals appeared this month.
🛑 Decision: WAIT – Observe price action in early February.
Step 7: Profit-Taking Strategies with Tactical Exits
- If price rebounds to 8.00, consider partial exits to mitigate risk.
- If price fails to hold 6.00, reassess exposure.
✅ Holding remains a valid strategy with caution.
🛑 Decision: HOLD – No immediate need to exit, but monitor closely.
Step 8: Potential Re-Entry Zones
- Best re-entry zone is near 6.00 if it holds as support.
✅ Consider adding on dips only if 6.00 holds.
🛑 Decision: WAIT – Avoid new entries unless stability is confirmed.
Step 9: Tactical Position Adjustments
- BUY trades at 6.95 and 7.18 are currently at a loss, requiring careful risk management.
- If price moves above 7.50, adding to the position could be considered.
🛑 Decision: HOLD – Monitor trend before adjusting.
Step 10: Counter-Trend Trading Considerations
- No counter-trend trade is necessary as the stock remains in a confirmed downtrend.
🛑 Decision: HOLD – No counter-trend action required.
Final Trade Recommendation
✅ Final Trade Recommendation: HOLD
✅ Recommendation: Maintain the position at 6.95 - 7.18, but avoid adding aggressively until a confirmed reversal appears.
✅ Risk Management: Stop-loss below 6.00 to manage downside risk.
✅ Profit-Taking Strategy: Target 8.00 - 10.00 for partial exits if a bounce occurs.
✅ Position Size Strategy: Hold the current position and consider adding only if price stabilizes above 6.50.
Next Steps
🔹 Short-term traders → Wait for a breakout above 7.50 before adding positions.
🔹 Long-term investors → Hold cautiously, as the trend remains weak.
🔹 Existing holders → Monitor the 6.00 level for potential support failure.
🚨 Final Thought: MONDE is in a strong downtrend with high selling volume. Wait for stabilization before adding more 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
No comments:
Post a Comment