AyalaLand Logistics Holdings Corp. Broke 3 – Trade On Earnings
While I wasn’t able to ride the other highflyers in the PSE last year, I managed to find one stock that was worth trading. The holding period was slow but worth it.
To give you a quick gist on what stock I held onto for almost two months, AyalaLand Logistics Holdings Corp. ($ALLHC) is a company that focuses on real estate and property development here in the Philippines.
They currently own a couple of technoparks located in Laguna, Cavite, Lagundingan, and Pampanga.
Buy On Earnings Hype?
As far as fundamentals are concerned, the only significant news that I saw was that it reported over Php 30 million income in their third quarter earnings report last November 13, 2020.
A few days after its earnings, I observed in our lazy technicals that it was about to break a Fibonacci level based on this initial plot that I did in the hourly chart.
However, as far as the reward potential is concerned, I observed that the 261.8% Fibonacci level was not in confluence with the resistance levels that I wanted it to reach (boxed in the charts) which resulted in re-plotting the retracement.
From a 14% reward potential, I was able to find a higher target that was in confluence with the Fibonacci levels.
Defense Is Still A Great Offense
Although I wasn’t able to hold longer to my expected target, I observed that the price resisted near the 141.40% levels and I didn’t even recount the Elliott Wave in the process of making this trade plan because I was fixated on the idea that 3.00 is a psychological resistance.
This was a high risk hold from this perspective because I was trying to decipher where Wave 5 would go in this scenario but I managed to approach this trade with a defensive mindset.
Not to mention I found this bearish divergence in the 15-minute timeframe that made me more cautious in securing profits.
During this time I was observing if 3.70 would hold intraday so I looked for a trail stop signal to secure profits and I found the Parabolic SAR was about to change to downtrend.
If you’ve read about my Trinity Philosophies, I’ve applied Paradiso in this context with the goal of riding the trend as long as I can and I managed to secure decent gains.
If AyalaLand Logistics Holdings Corp. releases a disclosure that can spark the investors’ interest this year, then a path to reaching 4.00 is much likely possible.
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On to the next trade!
Featured Image by Mohamed Hassan/Pixabay