Thursday, January 23, 2025

URC (Universal Robina Corporation) January 22, 2025, Daily Chart Analysis Using the Hybrid 10-Step Trading Strategy

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.

Technical chart of URC on January 22, 2025, displaying moving averages, price trends, and volume indicators.

URC’s January 22, 2025, daily chart shows strong bearish momentum, with key resistance at 75.00 and support forming around 60.00.

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.


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Tuesday, January 21, 2025

Evaluating RL Commercial REIT Inc. (RCR): Retracement Strategy as of January 21, 2025

Contents:

  • Retracement Perspective: Understanding the Power Move
  • Retracement Levels and Probabilities
  • Confirmation Signals to Watch
  • Trading Recommendation: Wait for Confirmation
  • Conclusion

As of January 21, 2025, RL Commercial REIT Inc. (RCR) closed at ₱5.94, which represents the 41% retracement level of a prior downward power move (from ₱6.29 to ₱5.70). Using the Percentage Retracement Trading Strategy, we aim to determine whether this is the right time to buy, sell, or hold.

RL Commercial REIT daily chart showing retracement levels and current price at ₱5.94.

RL Commercial REIT Inc. at 41% retracement after a downward move, January 21, 2025.



Retracement Perspective: Understanding the Power Move

  • Power Move: The downward movement that originated at ₱6.29 (100% retracement) and ended at ₱5.70 (0% retracement). This marks the start and end of the price decline.
  • Current Position: The price at ₱5.94 has retraced 41% upward from the low of ₱5.70.
  • Focus: As a trader focused on buying in upward setups (not shorting), the goal is to find confirmation that the price will reverse upward beyond the 55%-75% retracement zone, with a potential move back to ₱6.29 (100% retracement).

Retracement Levels and Probabilities

  1. Zone 1 (0%-33%) – Shallow Bounce with Weak Recovery Potential (₱5.70-₱5.89)

    • Current Price: ₱5.94 (41% retracement level).
    • Probability of Upward Continuation: Moderate. The price has rebounded from ₱5.70 but remains below the critical reversal zone (55%-75%). A shallow bounce often lacks the strength needed for a sustained move higher.
    • Trading Action: Wait for further confirmation of momentum and strength before adding positions. Entering too early may expose traders to a possible pullback.
  2. Zone 2 (33%-66%) – Deeper Bounce with Improving Reversal Potential (₱5.89-₱6.09)

    • This range partly overlaps with the Sweet Spot (55%-75%), which is the optimal reversal zone.
    • Probability of Reversal: 60%-90%. If the price enters this zone and shows strong volume and bullish candlestick confirmation, it increases the likelihood of a move back toward ₱6.29 (100% retracement level).
    • Trading Action: Consider buying in this zone, especially as the price moves closer to the 55%-75% range. A strong breakout past ₱6.05-₱6.15 strengthens the case for an upward continuation.
  3. Zone 3 (66%-100%) – Strong Bounce Approaching Full Reversal (₱6.09 and Beyond)

    • A breakout beyond ₱6.09 would indicate strong bullish momentum, increasing the probability of a full retracement to ₱6.29.
    • Trading Action: If the price breaks above ₱6.09 with strength, it reinforces a buy-and-hold strategy until the full retracement is achieved. Traders who entered earlier may add to their positions or hold until the price retests previous highs.

Confirmation Signals to Watch

Before committing to a trade, look for clear bullish confirmation in the ₱6.05-₱6.15 Sweet Spot (55%-75% retracement range):

  • Volume Surge: A noticeable increase in volume near ₱6.05-₱6.15 signals strong buyer interest.
  • Bullish Candlestick Patterns: Look for hammers, bullish engulfing, or piercing patterns, indicating a shift in momentum.
  • Breakout Above ₱6.09: A strong move and close beyond this level confirms upward momentum and increases the probability of a rally toward ₱6.29 (100% retracement level).

If these signals align, it supports a buy-and-hold strategy for potential upside continuation.


Trading Recommendation: Wait for Confirmation

Based on the current price at ₱5.94 (41% retracement), the stock is approaching the critical reversal zone (55%-75%) but has not yet provided sufficient confirmation for a buy decision. Here’s a breakdown of actions:

  1. Buy: Only if the price moves into the 55%-75% retracement zone (₱6.05-₱6.15) with strong bullish confirmation signals.
  2. Hold: If you already own RCR, hold your position while monitoring for signs of a reversal in the 55%-75% range.
  3. Sell: No immediate action to sell, as the stock is in a potential recovery phase.

Conclusion

At ₱5.94, RL Commercial REIT Inc. is at a pivotal retracement point. For traders focused on upward momentum, patience and confirmation are key before entering a position. Monitor price action closely as it approaches the 55%-75% retracement zone, where the probability of a reversal back to ₱6.29 significantly increases. Until then, a hold strategy is advised.


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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DDMPR January 21, 2025, Chart Evaluation Using the Hybrid 10-Step Strategy

Contents:

  • Overview of DDMPR’s Market Context
  • Chart Evaluation Using the Hybrid 10-Step Strategy
  • Final Thoughts

Overview of DDMPR’s Market Context

DDMP REIT Inc. (DDMPR) closed at ₱1.06 on January 21, 2025, with a -2.75% decline from the previous session. The day’s high was ₱1.08, and the low was ₱1.05, aligning closely with key moving averages. Volume stood at 3.022 million, indicating moderate trading interest.

A critical factor in today’s market action is the ex-dividend date of DDMPR. Historically, REITs tend to decline after the ex-date as investors adjust for the dividend payout. Let’s analyze this chart using our Hybrid 10-Step Trading Strategy to assess its potential movement.

DDMP REIT Inc. daily candlestick chart showing the stock's closing price at ₱1.06 on January 21, 2025. The 20-day moving average (₱1.05) and 200-day moving average (₱1.09) are displayed, indicating a test of resistance at the 200-MA before pulling back. Trading volume is at 3.022 million shares.

DDMPR’s January 21, 2025, stock chart showing key technical levels post-ex-dividend.



Step 1: Identifying Market State & Trend Context

  • 200-day MA (₱1.09): The price is still below the long-term moving average, indicating an overall downtrend.
  • 20-day MA (₱1.05): The stock has been consolidating around this short-term support level.
  • Trend Context: After a prolonged sideways phase, the stock has been attempting a short-term recovery but faces resistance near the 200-day MA.

📌 Conclusion: DDMPR is in an early trend reversal attempt but still struggling to break key resistances.


Step 2: Assessing Price Position Relative to Key Levels

  • The closing price (₱1.06) is above the 20-day MA (₱1.05) but below the 200-day MA (₱1.09).
  • A successful break and close above ₱1.09 could confirm a potential reversal.

📌 Conclusion: Caution is needed, as failure to hold above ₱1.05 could signal a pullback.


Step 3: Power Bars & Retracement Strength

  • The recent bullish push showed higher-than-average volume, but today’s red candle signals profit-taking.
  • The current retracement is moderate, suggesting this could be a temporary pullback.

📌 Conclusion: Watch for a green power bar in the next few sessions for confirmation.


Step 4: Entry Confirmation Using Technical Alignment

  • The ideal entry would be near the ₱1.05 support zone with a confirmation signal (e.g., bounce with strong volume).
  • Breakout Entry: A close above ₱1.09 could confirm bullish momentum.

📌 Conclusion: No clear entry signal yet, but potential setups exist if it holds above ₱1.05.


Step 5: Tactical Stop-Loss Adjustments

  • A logical stop-loss would be below ₱1.03 (recent swing low).
  • If it breaks below ₱1.05 decisively, a deeper correction may follow.

📌 Conclusion: Risk management is crucial—tight stops recommended below ₱1.03.


Step 6: Color Change as Secondary Confirmation

  • The price needs a green candle tomorrow to confirm strength.
  • If the next session turns red, it may indicate further weakness.

📌 Conclusion: A color change to green at this level would be a bullish signal.


Step 7: Profit-Taking Strategy

  • If entered at ₱1.05, potential profit-taking zones:
    • Partial Exit at ₱1.10 (above 200-day MA resistance and adjusted for transaction cost)
    • Full Exit at ₱1.15 (previous resistance)

📌 Conclusion: Short-term traders may consider scaling out if price struggles at ₱1.10.


Step 8: Re-Entry at Secondary Pullbacks

  • Best re-entry: If price pulls back near ₱1.03-₱1.05 and holds.
  • Aggressive traders could attempt a momentum breakout trade if it surges past ₱1.09.

📌 Conclusion: Monitor for re-entry opportunities around ₱1.05.


Step 9: Tactical Position Management

  • Shallow retracement (₱1.05-₱1.06) → Can consider larger positions.
  • Deeper retracement (₱1.03) → Smaller position with tight stop.

📌 Conclusion: Size positions accordingly based on retracement depth.


Step 10: Counter-Trend Trading Considerations

  • If the price fails to hold ₱1.05, a counter-trend short may be possible down to ₱1.00.
  • However, trading against a REIT’s support levels can be risky.

📌 Conclusion: Avoid counter-trend shorts unless a major breakdown occurs.


Trading Plan

  • Entry: Near ₱1.05 (if it holds)

  • Stop-Loss: Below ₱1.03

  • Targets: ₱1.10 (partial), ₱1.15 (full)

  • Position Allocation: 10,000 shares total (4,000 for Core Position, 6,000 for Tactical Actions)

  • Transaction Size: Minimum of 2,000 shares per trade

  • Core Position Entry:

    • Entry Price: Php 1.05 
    • No. of Shares: 4,000
    • Gross Amount: Php 4,200.00
    • Transaction Cost: Php 12.39
    • Net Amount: Php 4,212.39
  • Core Position Exit - Breakeven:
    • Exit Price: Php 1.07
    • No. of Shares: 4,000.00
    • Gross Amount:  Php 4,280.00
    • Transaction Cost: 
    • Net Amount: Php 4,241.69
    • Realized Gain: Php 29.30

  • Core Position Partial Exit:
    • Exit Price: Php 1.10
    • No. of Shares: 2,000.00
    • Gross Amount:  Php 2,200.00
    • Transaction Cost: Php 19.69
    • Net Amount: Php 2,180.31
    • Partial Profit: Php 74.00

  • Core Position Full Exit:
    • Exit Price: Php 1.15
    • No. of Shares: 2,000.00
    • Gross Amount:  Php 2,300.00
    • Transaction Cost: Php 20.58
    • Net Amount: Php 2,279.42
    • Partial Profit: Php 173.00
    • Total Gain: Php 247.00 (5.87%)

URC Closing Analysis – January 21, 2025

Contents:

  • Bearish Sentiment Prevails, Yet We Took a Small Contrarian Trade – Here’s Why
  • Evaluation of URC Closing Chart (January 21, 2025) Using Our Hybrid 10-Step Strategy
  • Final Trading Recommendation
  • The Questionable Yet Justifiable 50-Share Purchase at 65.95
  • Market Recap & URC Trade Evaluation
  • Transition to Phase 2: Expanding Our Trading Universe
  • Final Thoughts

Bearish Sentiment Prevails, Yet We Took a Small Contrarian Trade – Here’s Why

Today’s trading session saw URC closing at 66.00, maintaining its position within the 33% Retracement Continuation Zone—a clear indication that bearish momentum remains strong. Our Hybrid 10-Step Trading Strategy and Percentage Retracement Trading Strategy both suggested that the downtrend was intact, advising traders to sell or hold rather than buy.

URC stock closing chart with final Phase 1 trading decisions and transition to Phase 2 testing.

URC stock closing analysis for January 21, 2025, marking the end of Phase 1 strategy testing.


Evaluation of URC Closing Chart (January 21, 2025) Using Our Hybrid 10-Step Strategy


Step 1: Identifying Market State & Trend Context

  • The URC closing price of 66.00 remains within the 33% Retracement Continuation Zone, confirming that bearish sentiment is still dominant.
  • Price remains below both key moving averages (200-MA at 97.79, 20-MA at 75.40), reinforcing a strong downtrend.
  • Decision: SELL bias remains intact.

Step 2: Position, Location & Key Retracement Zones

  • Price is hovering below the key support of 67.00 and near the hard stop-loss level of 65.50.
  • The retracement sweet spots at 67.85 and 68.75 suggest that the stock failed to reclaim these levels, further solidifying bearish strength.
  • Decision: HOLD / SELL if further weakness persists.

Step 3: Power Bars & Retracement Strength

  • The red power bars remain dominant, with today's candle closing lower than the previous day.
  • Volume remains elevated at 4.363M, suggesting continued selling pressure.
  • Decision: SELL bias confirmed unless a strong reversal pattern emerges.

Step 4: Entry Confirmation From Both Strategies

  • There was no confirmed breakout above key resistance, with price struggling near the retracement zones.
  • Decision: SELL bias holds.

Step 5: Tactical Stop-Loss Adjustments

  • The hard stop-loss remains at 65.50, and the stock barely stayed above it at closing.
  • Our earlier full exit at 65.85 was a defensive move to prevent further downside exposure.
  • Decision: EXIT if price fails to reclaim support levels.

Step 6: Color Change as a Secondary Confirmation

  • The absence of a strong green power bar means no clear shift in momentum.
  • Decision: HOLD until reversal confirmation.

Step 7: Profit-Taking Aligned with Retracement Targets

  • If shorting, partial profit-taking near 66.00 could be considered as a tactical move.
  • Decision: PARTIAL SELL recommended.

Step 8: Re-Entry at Secondary Retracement Pullbacks

  • Since 67.00 remains a broken support, re-entry is highly speculative.
  • Decision: HOLD, as risk remains elevated.

Step 9: Tactical Position Management

  • The 33% Retracement Continuation Zone signals further downside potential.
  • Decision: HOLD / SELL based on further price movement.

Step 10: Counter-Trend Trades Only When Retracement Fails

  • Given that price is still within the bearish zone, counter-trend trades are risky and premature.
  • Decision: HOLD / SELL unless a major reversal appears.

Final Trading Recommendation

  • HOLD / SELL: The bearish trend remains in control, and buyers need confirmation before considering entries.
  • Monitor retracement levels: If price fails to reclaim 67.00, downside pressure will likely continue.

This concludes Week 4 of testing our Hybrid 10-Step Trading Strategy—and despite a few questionable trades, the strategy has remained effective and reliable in guiding our decisions.


The Questionable Yet Justifiable 50-Share Purchase at 65.95

Despite all signals pointing towards continued bearish momentum, we made a 50-share purchase at 65.95 just after the resumption of afternoon trading—even after fully exiting at 65.85 before the mid-day break.

So, why would we make a move that contradicts both our Hybrid 10-Step Trading Strategy and the Percentage Retracement Trading Strategy?

While the decision lacked technical justification, we can stretch an explanation based on the following perspectives:

  1. Strategic Experimentation with Controlled Risk

    • We may have taken the position to test market reaction at a key psychological zone (near 65.50-66.00).
    • The trade involved only 50 shares, making it a low-risk probe entry rather than a full commitment.
  2. Emotional Bias and Market Psychology

    • Sometimes, market instinct kicks in. A sense of overextension on the downside might have influenced the trade.
    • A possible overreaction in price action after the sharp drop could have hinted at a minor bounce attempt.
  3. Reassessing Market Momentum in Real Time

    • While our strategies signaled a continuation of the downtrend, intraday market movements sometimes present temporary strength unseen in daily charts.
    • A quick position might have been taken to assess price responsiveness at this level.
  4. A Learning Opportunity for Our Trading Strategy

    • This move allows us to test the effectiveness of our retracement rules in real time.
    • Even flawed decisions contribute to refining our approach for future trades.

Market Recap & URC Trade Evaluation

URC’s Closing Price & Technical Context

  • Closing Price: 66.00, within the 33% Retracement Continuation Zone—confirming persistent bearish momentum.

  • Hard Stop-Loss Level: 65.50, which remains a critical risk level.

  • Resistance Levels: 67.85 and 68.75, which the stock failed to reclaim.

  • Volume: 4.363M, showing continued selling pressure.

Trade Execution Summary

  1. We fully exited 300 URC shares at 65.85 before the mid-day break to protect our capital.

  2. We later purchased 50 shares at 65.95 after the afternoon session resumed.

    • This went against our strategy’s recommendation, as the bearish sentiment remained intact.

    • However, the small size of the trade and market conditions made it a calculated risk.

    • In hindsight, we acknowledge that strict adherence to our system should have prevailed.

Lessons & Strategy Adjustments

  • We should have followed our strategy without deviation.

  • Market instinct must never override structured risk management.

  • Controlled-risk testing helped refine our approach, but Phase 2 will be fully disciplined.

Transition to Phase 2: Expanding Our Trading Universe

With four weeks of testing behind us, we are confident in the effectiveness of our Hybrid 10-Step Trading Strategy. As we move forward into Phase 2, our focus shifts to applying the strategy across multiple Shariah-compliant stocks with absolute discipline—no deviations, no experimentation.

Phase 2 Trading Parameters

Starting Capital: ₱22,200.00
Stock Holdings: 1,000 RCR shares, 50 URC shares
Current Portfolio Status: -₱1,516.07 loss
Objective: Execute 20 trades following the strategy with precision.
Key Principle: Strict adherence to the system—trade exactly as the strategy dictates.

Final Thoughts

Phase 1 of our testing process has proven our strategy’s reliability, and despite minor missteps, it has provided structured guidance in making disciplined trade decisions. Now, Phase 2 begins, and we are excited to see how our strategy performs across multiple Shariah-compliant stocks.

After 20 fully disciplined trades, we will assess our results and refine our approach as necessary. The next chapter of our trading journey starts now.



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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URC Mid-Day Trading Insights – January 21, 2025

Contents:

  • Mid-Day Break Evaluation of URC (January 21, 2025) Using Our Hybrid 10-Step Strategy
  • Final Mid-Day Break Evaluation
  • Conclusion

Universal Robina Corporation (URC) continues to face strong selling pressure as traders navigate key support levels. In today’s mid-day session, we analyze URC’s price action using our Hybrid 10-Step Strategy to determine the best possible trading decisions.

URC stock mid-day analysis for January 21, 2025, highlighting trading strategy insights and technical signals.

URC intra-day chart showing support, resistance, and key decision levels for traders.


Mid-Day Break Evaluation of URC (January 21, 2025) Using Our Hybrid 10-Step Strategy

Step 1: Identifying Market State & Trend Context

  • URC remains in a strong downtrend, trading well below both the 200-day MA (97.79) and 20-day MA (75.37).
  • The price is testing a key support level at 67.00, but downward momentum is still present.
  • Decision: SELL Bias – But watch for a potential support bounce.

Step 2: Position, Location & Key Retracement Zones

  • The stock is trading below both key moving averages and within a high-risk zone near 65.50.
  • Bargain price is set at 60.00, indicating a potential deeper retracement if 65.50 fails.
  • Decision: HOLD (if waiting for a bounce confirmation) / SELL (if price remains weak).

Step 3: Power Bars & Retracement Strength

  • Recent red power bars indicate strong selling pressure, with high volume confirming downward momentum.
  • No significant green elephant bars have emerged to confirm a reversal.
  • Decision: SELL (unless strong green bars emerge near support).

Step 4: Entry Confirmation From Both Strategies

  • The price is hovering near the key support level at 67.00, but there is no clear breakout above resistance.
  • If a strong green candle appears, a buy can be considered.
  • Decision: HOLD (for confirmation) / SELL (if price closes below support).

Step 5: Tactical Stop-Loss Adjustments

  • The hard stop-loss is set at 65.50 to prevent excessive losses.
  • If price breaches 65.50, exiting entirely is the best risk-management decision.
  • Decision: SELL (if price approaches or breaks 65.50).

Step 6: Color Change as a Secondary Confirmation

  • The recent red bars indicate no clear color change from red to green.
  • For a reversal, a strong green elephant bar near 67.00 is required.
  • Decision: HOLD (if waiting for confirmation) / SELL (if continued weakness).

Step 7: Profit-Taking Aligned with Retracement Targets

  • If already shorting from higher levels, partial profit-taking is a reasonable strategy.
  • The hard resistance is at 71.50, meaning any upward move near this level should be considered for exit.
  • Decision: PARTIAL SELL (for securing gains).

Step 8: Re-Entry at Secondary Retracement Pullbacks

  • If price retests 67.00 and holds, a possible re-entry can be considered.
  • If price drops below 65.50, avoid re-entering until 60.00 bargain price is tested.
  • Decision: HOLD (for now), SELL if 65.50 fails.

Step 9: Tactical Position Management

  • The market is still bearish, requiring careful trade management.
  • Reducing position size and protecting capital is essential.
  • Decision: PARTIAL SELL (for capital protection).

Step 10: Counter-Trend Trades Only When Retracement Fails

  • If the price plunges to 60.00, a counter-trend trade can be considered.
  • Until then, the overall sentiment remains bearish.
  • Decision: HOLD for now, wait for further confirmation.

Final Mid-Day Break Evaluation

  • HOLD: If waiting for clearer reversal confirmation.
  • PARTIAL SELL: If already shorting, take partial profits.
  • SELL: If price drops below 65.50 or fails to show recovery.

📌 Final Decision: HOLD / PARTIAL SELL (Monitor for price action at key levels).

Conclusion

The afternoon session will be crucial in determining whether URC can defend its 67.00 support level or if further downside awaits. Traders should remain cautious and follow key risk management strategies to protect their capital.

Execution of Our Trade Decision

Given the weakness in price action and our strict adherence to risk management, we decided to entirely exit our 300 URC shares at 65.85 before the mid-day break, as the price approached our hard stop-loss at 65.50. Unfortunately, we were slightly delayed in executing our exit, reinforcing the importance of prompt execution in risk management. This decision was made to limit potential losses and reassess the market before considering any re-entry opportunities.

Lessons Learned and Strategy Reflection

In hindsight, our 90-share purchase of URC on January 20 was a misstep, as the sell signal did not materialize strongly enough to justify entry. Following our strategy more strictly would have helped us avoid unnecessary exposure. Additionally, our January 16 exit should have been a full exit rather than a partial one, as price action has confirmed continued bearish momentum. However, these experiences serve as valuable lessons.

This marks Week 4 of testing our Hybrid 10-Step Trading Strategy, and overall, it has proven to be an effective framework. Despite some execution errors, the strategy has provided structured guidance and risk management, keeping our trading decisions disciplined. We acknowledge our lessons and move forward with greater confidence in the system.


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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Monday, January 20, 2025

Justifying the 90-Share Purchase of URC Despite a Sell Signal

Contents:

  • The WHY?
  • Final Thoughts: A Tactical, Speculative Play

In our most recent analysis of Universal Robina Corporation (URC) using our Hybrid 10-Step Trading Strategy and Percentage Retracement Trading Strategy, we reached a SELL or partial SELL conclusion. The closing price of PHP 68.80 was within the 33% Retracement Continuation Zone, which typically suggests that the bearish momentum is still in play. However, despite this assessment, we made a contrarian decision to purchase 90 shares during the run-off session. The question is: why?

URC stock chart showing retracement levels and moving averages

URC Daily Chart Analysis as of January 20, 2025


1. Position Sizing for Future Upside

While our strategies indicated a SELL, we did not make an aggressive buy but instead took a small 90-share position. This allowed us to maintain exposure in the event of an unexpected reversal or relief rally without significantly increasing our risk.

2. Intraday or Run-Off Strength Consideration

During the run-off session, we observed subtle indications of buyer absorption at the lower price levels. This could imply that sellers may have exhausted their momentum, providing an opportunity for a small tactical entry.

3. Contrarian Play on a High-Risk Reward Setup

The 33% retracement continuation zone suggests that the downtrend remains active, but it also serves as an area where some reversal attempts may form. Taking a contrarian approach, we positioned ourselves for a possible counter-trend bounce while maintaining tight risk controls.

4. Preemptive Entry for a Possible Rebound

By entering at PHP 68.80, we positioned ourselves for a potential rebound toward the 20-day moving average (PHP 75.94) or the 66% retracement level (PHP 75.30). This trade assumes that a reaction to these levels is likely in the short term, creating an opportunity for a quick gain.

5. Global Market Sentiment: Trump’s Inauguration & Macro Considerations

In a few hours, Donald J. Trump will be sworn in as the 47th President of the United States. While this may seem distant from URC’s fundamentals, global market sentiment often trickles down to emerging markets like the PSE.

How Could Trump's Inauguration Affect the Market?

  • Risk Sentiment Shift – If global investors perceive Trump's policies as pro-business, risk appetite may return, benefiting emerging market stocks.

  • Currency Fluctuations – A potential strong US dollar policy may weaken the Philippine Peso, which could impact consumer goods companies like URC due to import costs. This uncertainty may have already been priced into the sell-off.

  • Trade Relations & Commodities – If the US focuses on trade barriers, global supply chains may be affected. However, this could also mean a temporary relief rally as markets adjust to the new administration’s direction.

Final Thoughts: A Tactical, Speculative Play

Despite our trading strategies signaling a SELL, our 90-share purchase was a calculated tactical entry. We viewed this as a speculative trade based on:

  • The potential for a near-term relief rally after market uncertainty fades.

  • A contrarian stance at the 33% retracement level, anticipating at least a short-term bounce.

  • External macroeconomic factors, including the impact of the US presidential transition on investor sentiment.

While our core strategies guide our trading discipline, market conditions sometimes justify small discretionary trades. This purchase is not about abandoning our strategies, but rather about adapting to real-time market conditions while keeping risk in check. If the price fails to hold, we remain ready to exit quickly with minimal losses, reinforcing our commitment to strategic risk management.


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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GAWLOO: Ang Lugawang May Sarap ng Southeast Asia — Gawa ng Batangueñong Galing Abroad

Kung taga-Rosario, Batangas ka at nag-crave ka ng lugaw na may level-up na twist—eto na ang sagot sa panalangin ng sikmura mo: GAWLOO, The Southeast Asian Congee Experience.

Kung taga-Rosario, Batangas ka at nag-crave ka ng lugaw na may level-up na twist—eto na ang sagot sa panalangin ng sikmura mo: GAWLOO, The Southeast Asian Congee Experience.

GAWLOO, The Southeast Asian Congee Experience facade

📍 Matatagpuan sa V. Escaño St., Brgy. C, Rosario Batangas, si GAWLOO ay hindi lang basta kainan — isa siyang kwento ng pangarap, passion, at panlasang umikot sa Asia.


GAWLOO, The Southeast Asian Congee Experience Dine-In

Ang may-ari, si Jay Ubana, ay isang Batangueñong cook na nagtrabaho sa Singapore at Dubai ng 12 taon. Sa dami ng napuntahan niyang bansa—Hong Kong, Taiwan, Singapore—natutunan niyang i-appreciate ang iba't ibang bersyon ng congee. “Paborito talaga ng mga Pinoy ang lugaw,” wika ni Jay, “Kahit anong oras, kahit anong pakiramdam—masarap maglugaw.”

⭐ Lasa't Alaala sa Bawat Higop

Hindi lang basta lugaw, kundi southeast Asian-inspired congee na may toppings na mala-ulam sa sarap:

Kung taga-Rosario, Batangas ka at nag-crave ka ng lugaw na may level-up na twist—eto na ang sagot sa panalangin ng sikmura mo: GAWLOO, The Southeast Asian Congee Experience.

GAWLOO, The Southeast Asian Congee Experience facade

🍲 Seafood Gawloo at Lechon Gawloo — ang kanilang best-sellers na puwedeng pang-breakfast o pang-dinner.

🍛 Mix & Match Toppings: Tuwalya, Chicharon Bulaklak, Atay, Chicken, Fried Tokwa at iba pa.

🍗 Rice Meals tulad ng Chao Fan with Pork Siomai, Chicharon Bulaklak, o Lechon Kawali — swak sa mga ayaw ng sabaw pero gusto pa rin ng siksik sa lasa.

🧋 Drinks? May Black Gulaman at Lychee para pampawi ng uhaw habang humihigop ka ng mainit-init na lugaw.

💸 Presyo na Kayang-Kaya

Hindi mo kailangang bumyahe pa sa abroad para matikman ang ganitong congee—₱80 lang ang Small Bowl na may 1 Topping, at kung mas gutom ka, may Large Bowl for ₱90. Pwede ka ring magpa-top up ng 2, 3 o 4 na toppings para sa ultimate lugaw overload!

🤳 Para sa mga G na umorder online

Pwede kang magpa-deliver! Text o tawag lang sa 09397785658. Hanapin lang ang GAWLOO sa Facebook para sa menu at updates.


Sa totoo lang, sa bawat higop ng lugaw sa GAWLOO, parang may yumayakap sa’yo—maalala mo si Nanay o si Lola na nagluluto ng lugaw tuwing masama ang pakiramdam mo. Ngayon, kahit wala si Nanay sa tabi mo, may GAWLOO ka sa Rosario.

Supportahan natin ang lokal! Tikman ang lugaw na may kwento. Tikman ang GAWLOO.

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