Contents:
- Introduction
- URC Chart Evaluation Using the 10-Step Trading Strategy
- Final Decision: SELL
- Key Takeaways & Next Steps
Introduction
The recent price action of Universal Robina Corporation (URC) has drawn significant attention as the stock continues its downtrend. Using the Hybrid 10-Step Trading Strategy Checklist, we analyze whether URC presents a buying opportunity, a hold signal, or a clear sell indication based on its technical structure, price positioning, and candlestick behavior.
URC's daily chart as of January 17, 2025, shows strong bearish momentum.
URC Chart Evaluation Using the Hybrid 10-Step Trading Strategy
Step 1: Identify Market State & Trend Context
✔ Is the market in an uptrend? → ❌ No
✔ Is the market sideways? → ❌ No
✔ Is the market in a downtrend? → ✅ SELL
Analysis: URC remains below its key moving averages (20-MA at ₱76.37, 200-MA at ₱98.15), confirming a strong downtrend.
Step 2: Position, Location & Key Retracement Zones
✔ Is the price above key moving averages and near a support level? → ❌ No
✔ Is the price at mid-range with no clear trend? → ❌ No
✔ Is the price below key moving averages and near resistance? → ✅ SELL
Analysis: Price is trading far below both MAs, signaling continued weakness.
Step 3: Power Bars & Retracement Strength
✔ Are there strong green power bars near support? → ❌ No
✔ Are there strong red power bars near resistance? → ✅ SELL
Analysis: The chart shows dominant red candles, confirming selling pressure and a lack of strong buying momentum.
Step 4: Entry with Confirmation from Both Strategies
✔ Is there a confirmed breakout above resistance? → ❌ No
✔ Has the breakout failed with price moving downward? → ✅ SELL
Analysis: Recent price action failed to break higher and is continuing its downward movement.
Step 5: Tactical Stop-Loss Adjustments
✔ Is the price approaching stop-loss without recovery? → ✅ SELL
Analysis: No recovery attempts indicate a continued bearish bias.
Step 6: Color Change as a Secondary Confirmation
✔ Is there a shift from green to red near resistance? → ✅ SELL
Analysis: The price structure shows strong red candles, confirming continued downside risk.
Step 7: Profit-Taking Aligned with Retracement Targets
✔ Has price reached a major resistance level? → ✅ PARTIAL SELL
Analysis: If holding a position, partial selling can reduce risk exposure.
Step 8: Re-Entry at Secondary Retracement Pullbacks
✔ Has price broken below support? → ✅ SELL
Analysis: The break below ₱70 signals further downside potential.
Step 9: Tactical Position Management
✔ Is price hesitating at key levels? → ✅ PARTIAL SELL
Analysis: Reducing exposure is a logical approach in a downtrend.
Step 10: Counter-Trend Trades Only When Retracement Fails
✔ Is price still in a strong downtrend with no recovery? → ✅ SELL
Analysis: No reversal signals indicate further downside movement.
Final Decision: SELL 🚨
Why SELL?
✔ Market is in a strong downtrend with price below key moving averages.
✔ The price has broken key support levels, confirming further downside risk.
✔ Red power bars and strong selling pressure dominate the chart.
✔ No bullish reversal patterns are evident, making a recovery unlikely in the near term.
✔ Failed breakouts reinforce bearish momentum, indicating further selling pressure.
📉 Final Verdict: SELL before further declines.
Key Takeaways & Next Steps
🔹 Short-term traders → Avoid buying until a confirmed reversal pattern emerges.
🔹 Long-term investors → May consider waiting for stabilization before entering.
🔹 Existing holders → Should consider selling or reducing exposure.
🚨 Final Thought: Bottoming is a process, not a single event. Wait for bullish confirmation before considering a buy. 🚨
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
