Contents:
- Introduction
- Hybrid 10-Step Trading Strategy Review
- Final Stock Recommendation
- Next Steps
Introduction
Manila Electric Co. (MER), a key player in the Philippine power sector, is actively traded on the Philippine Stock Exchange (PSE). As of February 11, 2025, we analyze the stock using our Hybrid 10-Step Trading Strategy 3.0 to determine whether MER presents a buy, sell, or hold opportunity based on its technical setup.
TRADE DETAILS
- Date: February 11, 2025
- Stock: Manila Electric Co. (MER)
- Exchange: Philippine Stock Exchange (PSE)
- Timeframe: Daily
- Pullback Under Consideration:
- Start of Power Move Date: January 22, 2025
- Start of Power Move (100% Pullback): ₱503.50
- End of Power Move Date: January 31, 2025
- End of Power Move (0% Pullback): ₱448.00
- Power Move Trend: Bearish
- Power Move Sweet Spot: ₱478.53 - ₱489.63
- Pullback Level To Date: 72%
- Volume Analysis as of February 11, 2025:
- Closing Volume: 103.66K
- 65-day volume average: 228.03K
- 30-day volume average: 220.94K
- Target Breakout Volume (65-day x 1.8 volume average): 410K
This stock price review follows our Hybrid 10-Step Trading Strategy 3.0 for a structured and data-driven assessment.
MER Stock price chart displaying key technical indicators, including moving averages, volume trends, and price action patterns as of February 11, 2025.
Hybrid 10-Step Trading Strategy Review
Step 1: Identify Market State & Trend Context
- The 20-MA (₱481.38) is above the 200-MA (₱428.53), confirming an uptrend.
- The current price (₱485.00) is above both moving averages, maintaining a bullish market structure.
- Verdict: BUY
Step 2: Price Position & Retracement Zones
- The stock retraced from ₱503.50 to ₱448.00, indicating a strong pullback of 72%, entering a critical retracement zone.
- The ideal buy zone is ₱478.53 - ₱489.63, where price is currently trading.
- Verdict: BUY (Within the Power Move Sweet Spot)
Step 3: Power Bars, Breakout Signals & Volume Confirmation
- The lack of power bars and low volume suggest that MER is consolidating.
- Volume is weak (103.66K), failing to meet the breakout requirement of 410K.
- Verdict: WAIT for volume confirmation before entering aggressively.
Step 4: Entry Confirmation Based on Technical Signals
- No strong breakout signal yet.
- A break above ₱490.00 with volume above 410K would confirm an upward continuation.
- Verdict: BUY with caution; wait for stronger confirmation.
Step 5: Stop-Loss Positioning & Risk Management
- Ideal stop-loss: Below ₱470.00 (recent support).
- Aggressive stop-loss: Below ₱460.00 (deep retracement level).
- Verdict: BUY only with a defined stop-loss below ₱470.00.
Step 6: Color Change Signals for Additional Confirmation
- No major color change signals.
- Price is consolidating, and momentum needs to shift.
- Verdict: WAIT for a bullish confirmation candle.
Step 7: Profit-Taking Strategies with Tactical Exits
- First target: ₱490.00 (previous resistance).
- Second target: ₱500.00 (psychological resistance).
- Third target: ₱510.00 (new highs).
- Verdict: BUY with targets at ₱490.00-₱510.00.
Step 8: Potential Re-Entry Zones
- First re-entry zone: ₱470.00 (50% retracement level).
- Second re-entry zone: ₱460.00 (deep pullback).
- Verdict: HOLD until re-entry at ₱470.00 or ₱460.00.
Step 9: Tactical Position Adjustments (Position Sizing Strategy)
- Core Position: 50% entry size at ₱478.00-₱485.00.
- Tactical Position: Add 10% if price breaks ₱490.00 with volume.
- Verdict: BUY with controlled position sizing.
Step 10: Counter-Trend Trading Considerations
- Not applicable as the stock is in an uptrend.
- Verdict: No counter-trend trading required.
Final Stock Recommendation
Final Trade Recommendation: BUY (With Confirmation)
✅ Recommendation: Buy near ₱478.53 - ₱485.00 while within the Power Move Sweet Spot.
✅ Risk Management: Stop-loss below ₱470.00 to protect against downside risk.
✅ Profit-Taking Strategy: Target ₱490.00, ₱500.00, and ₱510.00 for gradual exits.
✅ Position Size Strategy: Start with a moderate position and add on breakout above ₱490.00 with volume.
Next Steps
🔹 Short-term traders → Wait for volume breakout above ₱490.00 before adding more shares.
🔹 Long-term investors → Buy within the sweet spot (₱478.53 - ₱489.63) for a strong risk-reward setup.
🔹 Existing holders → Hold with targets at ₱490.00, ₱500.00, and ₱510.00.
🚨 Final Thought: The pullback has reached 72%, making it an attractive buy if volume strengthens. Wait for confirmation. 🚨
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
