Sunday, September 16, 2018

$PHA - Another Interesting Stock

Driven by a positive press release, the stock shot up to 0.52 from 0.37 last 30 August. Those who ride this stock based on emotional decision were certainly disappointed. The following 5 days, the gap was filled and the stock returned to where it started @ 0.37 and then rallied to 0.43. This time, the trade is less emotional.

Trading based on emotion isn't healthy. The fear of being left out causes traders to commit mistake. It is because the mind is covered with a negative emotion causing him to cloud his decision.

Trade value the day the stock soared was 356x higher compared to the previous trade. This is an indication that something is happening in this stock. However, the following 5 days show a continuous reduction in volume and decline in price. This to me indicates a healthy retracement. On 31 August, the volume was 3.2x lower; 03 September, it was 1.6x lower; 04 September, it was 2.4x lower; and on 05 September, it was 3.7x lower. And then on 06 September, the bulls returned and pushed the volume to increase 7x higher.

After that 2nd rally on 06 September, it was followed again by a 5-day retracement returning the price to 0.3850. On 07 September, volume was 1.4x lower; 10 September, almost the same as the previous trade; 11 September, 4.8x lower; 12 September, a sign of hope for the volume increased 2.4x higher; 13 September, volume was 1.5x higher but the price was down, not a good sign But last Friday, volume was up again 1.4x higher on a positive day.

Where do you think this stock is heading? As before, it might have its 3rd rally followed by a 5-day retracement. Better to wait and observe. A possible entry price is @ 0.40.

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