MM showed a bullish candle today and its very likely that it will break 8.00 PHP in the near term. However, the question is it safe to enter now or should we wait?

EOD | January 25, 2021

Only 4 brokers printed positive net value today which is TIMSON, AAA, INVESTOR and CITISEC while COL, FIRSTMETRO, BDO, BPI, PHILSTOCK and PNB are selling based on the total turnover.

Out of the 68 brokers, only 26 are buying and 42 are selling.

Price distribution for EOD (Jan 25, 2021)

With this data, are we able to pinpoint MM’s true market sentiment? Apparently, we cannot and we need to go back 1 week back or even 30 days broker transactions in order to determine this.

January 18 – 22, 2021

As per the data above, it’s obvious that a lot of brokers are accumulating MM. Only 2 brokers are net sellers and 8 are net buyers.

Out of 99 participants, 61 are buying and sellers are only 38.

Last week, the top 3 accumulators are COL with 28.41M net value averaging with 7.56, SB-EQTY accumulated 17M with an average price of 7.65, ATR at 12M with 7.60 ave price.

We can clearly see that MACQUAR has been unloading shares followed by PNB and UNICAP.

Last 30 days net value accumulators

For the last 30 days, COL, FIRSTMETRO, BDO, PHLSTOCK wealth has been buying MM although, we can see in the graph that most brokers unloaded share last Jan 21. Pinoydesk thinks that this happened as most brokers are slicing their position due to the price movement of PSEi.

Technical Analysis

As per technical analysis, price is now back at the short term support group and we wanted price to hover in that area. What we don’t want to see is price closing below long term support. If that happens, a lot of brokers will sell MM and may return back to M100 – 200.

Verdict

Pinoydesk thinks its already a good time to enter but only in tranches. As we can see on the data, broker’s are accumulating and anytime soon, MM may break the 8.00 resistance. The reason why we only advise to enter in tranches is because MM may revisit its support which may be an opportunity to buy on dips.

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