Contents:
- Introduction
- Hybrid 10-Step Trading Strategy Review
- Final Stock Recommendation
- Next Steps
I. Introduction
Monde Nissin Corporation (MONDE) is a major food and beverage player in the Philippine stock market. As of February 17, 2025, MONDE has shown a recovery attempt after its bearish power move from 9.95 to 6.65. The stock has now retraced to a pullback level of 57%, positioning it near the power move sweet spot of 8.47 - 9.13.
This review will apply the Hybrid 10-Step Trading Strategy 3.0 to determine whether MONDE presents a buy, sell, or hold opportunity.
Trade Details
- Date: February 17, 2025
- Stock: Monde Nissin Corporation (MONDE)
- Exchange: Philippine Stock Exchange (PSE)
- Timeframe: Daily
- Closing Price: 8.15
- High: 8.20
- Low: 7.92
- 20-MA (Short-Term Trend): 7.36
- 200-MA (Long-Term Trend): 9.57
Pullback Under Consideration
- Start of Power Move Date: November 20, 2024
- Start of Power Move (100% Pullback): 9.95
- End of Power Move Date: January 31, 2025
- End of Power Move (0% Pullback): 6.65
- Power Move Trend: Bearish
- Power Move Sweet Spot: 8.47 - 9.13
- Market Price To Date: 8.52
- Pullback Level To Date: 57%
Volume Analysis (as of February 17, 2025)
- Closing Volume: 7.56M
- 30-day Volume Average: 9.47M
- 65-day Volume Average: 6.94M
- Target Breakout Volume (65-day x 1.5 volume average): 10.41M
While MONDE has entered a technical retracement zone, volume has not yet fully confirmed a bullish breakout. Let’s proceed with the Hybrid 10-Step Strategy analysis.
MONDE Daily and Monthly Stock Charts as of February 17, 2025
II. Hybrid 10-Step Trading Strategy Review
Step 1: Identify Market State & Trend Context
Daily Chart:
- MONDE is still in a long-term downtrend, as it trades below the 200-day MA (9.57).
- However, it has reclaimed the 20-day MA (7.36), indicating short-term bullish momentum.
Monthly Chart:
- The stock has bounced from the recent low (6.65) but remains below the 20-MA (9.14).
- This suggests that long-term recovery is uncertain, and further confirmation is needed.
➡ Verdict: Wait (Short-term bullish, but long-term trend is still down).
Step 2: Price Position & Retracement Zones
- MONDE is in the 57% pullback zone, right above the sweet spot (8.47 - 9.13).
- A break above 9.13 would confirm a bullish continuation.
- A rejection below 8.47 would indicate a failed recovery and a possible retest of 7.50 or lower.
➡ Verdict: Watch for Breakout Above 9.13 (Key Decision Zone).
Step 3: Power Bars, Breakout Signals & Volume Confirmation
- MONDE has printed multiple green candles, but breakout volume is missing (current volume = 7.56M vs. target breakout volume = 10.41M).
- The stock needs a surge in volume above 10.41M to confirm a breakout.
➡ Verdict: Wait (Volume is below breakout threshold).
Step 4: Entry Confirmation Based on Technical Signals
- An ideal buy entry would be on a break above 9.13 with strong volume.
- Current resistance levels:
- Short-term: 8.47 - 9.13
- Mid-term: 9.57 (200-MA)
➡ Verdict: Wait (Buy on breakout above 9.13 with strong volume).
Step 5: Stop-Loss Positioning & Risk Management
- If entering long, stop-loss should be placed below 7.50 to protect against downside risk.
- A drop below 6.65 would indicate further downside pressure.
➡ Verdict: Buy only with risk management (Stop-loss at 7.50).
Step 6: Color Change Signals for Additional Confirmation
- MONDE has shown consistent green candles, signaling bullish momentum.
- However, it needs to sustain this trend above key resistance levels.
➡ Verdict: Wait (Needs sustained strength above 9.13).
Step 7: Profit-Taking Strategies with Tactical Exits
- Profit targets:
- Short-term: 9.13
- Mid-term: 9.57
- Long-term: 10.50
➡ Verdict: Hold with profit-taking at key resistance zones.
Step 8: Potential Re-Entry Zones
- Buy on retracement near 8.00 if support holds.
- Breakout entry at 9.13 for momentum continuation.
➡ Verdict: Watch for re-entry on retracement or confirmed breakout.
Step 9: Tactical Position Adjustments
- Core Position: Entry should be considered above 9.13 with volume confirmation.
- Tactical Entry: A smaller position may be taken near 8.15, but only if support holds.
➡ Verdict: Small position possible near 8.15, full position upon breakout.
Step 10: Counter-Trend Trading Considerations
- Counter-trend trades are not recommended unless the stock retests 7.00 with a bullish reversal pattern.
➡ Verdict: Avoid Counter-Trend Trading.
III. Final Stock Recommendation
Final Trade Recommendation: HOLD/WAIT
✅ Recommendation: Wait for a breakout above 9.13 before entering.
✅ Risk Management: Stop-loss below 7.50 to minimize downside risk.
✅ Profit-Taking Strategy: Target prices at 9.13 (short-term), 9.57 (mid-term), and 10.50 (long-term).
✅ Position Size Strategy: Start small near 8.15 if support holds, increase size upon breakout confirmation.
IV. Next Steps
🔹 Short-term traders: Avoid entering until MONDE clears 9.13 with strong volume.
🔹 Long-term investors: Monitor for stability above 8.15 before considering accumulation.
🔹 Existing holders: Consider reducing exposure if price fails to break 9.13.
🚨 Final Thought: MONDE is in a potential reversal phase but needs confirmation above 9.13. A breakout with volume is required for a buy signal. 🚨
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.
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- Micro Stock Trader: Comparing the Modified 10-Step Trading Strategy vs. Retracement Trading Strategy
- Micro Stock Trader Portfolio Tracker Page
