Contents:
- Overview
- Hybrid 10-Step Trading Strategy Analysis
- Conclusion
Overview
Universal Robina Corporation (URC) remains in a strong downtrend, with price continuing to make lower highs and lower lows. The stock is trading well below both the 20-day moving average (74.90) and the 200-day moving average (97.59), confirming sustained bearish momentum. Resistance at 75.00 remains a critical hurdle, while support is forming at 64.00 - 60.00. Recent red power bars and increased volume indicate persistent selling pressure, suggesting further downside risk. While a short-term bounce is possible, long positions should only be considered if price stabilizes and forms a strong bullish signal above 64.00. Until then, short trades remain the preferred strategy, with potential downside targets at 60.00 - 58.00. resistance.
Market State & Trend Context (Step 1)
Universal Robina Corporation (URC) remains in a strong downtrend, with the price making lower highs and lower lows:
- The 200-day moving average (97.59) is sloping downward, confirming a long-term bearish trend.
- The 20-day moving average (74.90) is also trending lower, acting as a dynamic resistance level.
- The stock is currently trading at 64.50, well below both moving averages, reinforcing the bearish market structure.
Position, Location & Key Retracement Zones (Step 2)
- The price is positioned far below both moving averages, indicating significant selling pressure.
- Major resistance is at 75.00, aligning with the 20-MA rejection zone.
- Support is forming at 64.00 - 60.00, which could act as a short-term stabilization area.
- If price continues to break down, the next major support zone is around 58.00 - 60.00.
Power Bars & Retracement Strength (Step 3)
- The recent trading sessions show strong red power bars, confirming persistent bearish momentum.
- Volume has increased, suggesting active selling pressure rather than a lack of liquidity.
- No strong green power bars have emerged yet, meaning buying interest remains weak.
Entry with Confirmation from Both Strategies (Step 4)
- Short entries remain viable, especially if the stock retests and rejects 70.00 - 75.00.
- Long trades should only be considered if price stabilizes and forms a strong bullish pattern above 64.00.
Tactical Stop-Loss Adjustments (Step 5)
- For shorts, a stop-loss should be placed above 75.00, where a break could signal trend exhaustion.
- For longs, a stop-loss at 60.00 ensures protection against further downside risk.
Color Change as a Secondary Confirmation (Step 6)
- The last few candles remain red, signaling ongoing bearish momentum.
- A color change to green near 64.00 - 60.00 would suggest a potential bottoming formation.
Profit-Taking Aligned with Retracement Targets (Step 7)
- For shorts, profit-taking should be considered at 60.00 - 58.00, where some buying support might appear.
- For longs, an exit near 70.00 - 75.00 would be reasonable given the downtrend resistance zones.
Re-Entry at Secondary Retracement Pullbacks (Step 8)
- If price rebounds from 60.00, a secondary long entry could be considered.
- A failed breakout at 70.00 could present a short re-entry opportunity.
Tactical Position Management (Step 9)
- Short positions should be favored, with sizing adjusted based on retracement strength.
- If price bounces with strong volume, scaling into a small long position may be justified.
Counter-Trend Trades Only When Retracement Fails (Step 10)
- A counter-trend long is only valid if the stock reclaims 66.00 with strength.
- Otherwise, following the primary downtrend remains the safer strategy.
Conclusion
The January 22, 2025, daily chart of URC reinforces a strong downtrend, with resistance at 75.00 and support at 60.00.
- Short positions remain favorable, especially below 70.00.
- Long positions require confirmation, preferably with a strong green power bar and volume surge.
Traders should remain cautious and wait for trend confirmation before making directional trades.
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
