Congratulations to our featured trader for this week, Potato Trader a.k.a. @poatatotrader!
Potato Trader spotted $PHEN (PHINMA Energy Corporation) last May 7, 2019 as follows:
Link: https://www.investagrams.com/Post/poatatotrader/678428
ON TECHNICALS
Potato Trader identified1.65 as a support, with a long legged doji candle (this type of candle is created when the stock’s open and close price are virtually the same) that closed at P1.68. On the next day, another doji formed thus sentiments of the traders are still undecided. While Potato Trader thought of a retest to be made after 7th, the stock rallied the next two days (despite the market condition) hitting his two spotted resistances with confirmation of a 52 week high touch and closed the Friday bull at P2.03. His fib approach is to reach the golden ratio (sometimes called as Phi, which is the Greek letter Φ) of Fibonacci sequence at 1.618, the equal level of 2.15 price resistance.
BREAKING THE NORM WITH FUNDAMENTALS
Potato Trader’s analysis is a combination of technicals and fundamentals.
Here are the news-driven disclosures that he listed providing additional information to investors. These include:
– Approval of Sale of shares in PHINMA Energy Corporation (“PHEN”) to AC Energy, Inc. (“AC Energy”)
– Authority to issue 2,632,000,000 primary shares to AC Energy, Inc. at P 1.00 per share
– Authority to undertake a Voluntary Tender Offer (VTO) for the remaining common shares of PPG, the terms of which shall be announced separately on the date of the commencement of the tender offer
https://business.mb.com.ph/2019/05/01/ayala-to-keep-phinma-energy-a-listed-firm/
– AC Energy and The Blue Circle will start construction of 170 MW Wind Farm in Vietnam
Combining the strengths of both worlds could help investors to understand the markets better and gauge its direction in which their investments might be headed.
Here’s what happened days after his analysis:
Three (3) days after his analysis, $PHEN price climbed 0.29 points at closing price giving its investors a whooping 17.42% gain in just three (3) days.
AFTER EFFECT
Link: https://www.investagrams.com/Post/poatatotrader/681746
On May 11, 2019, Potato Trader then again posted a $PHEN supporting his previous analysis and now combined his technicals with RSI (Relative Strength Index). At this point, the RSI reached above 70 levels maintaining its parabolic status. For beginners, please note that 70 levels of RSI reads that the price is becoming overbought/overvalued and may be prepped for a trend reversal or a pullback in price.
Anticipating breakout continuation and parabolic move, Potato Trader plotted price points levels between 2-2.15 resistance. A healthy pullback from the short-term traders to lock in profits is expected and must be in placed and he is looking at price points 1.80 then 1.65 to support the norm.
In case you decide to take this trade with $PHEN, always remember to set a stop loss based on your established limit loss on a security position and risk tolerance level.
Again, we would like to congratulate @poatatotrader (your access to FREE one-month ACCESS of InvestaJournal is on its way!) and of course, wishing the good lucks to the rest of $PHEN holders who are able to ride this trade!
Happy trading!