GGAL
📉 Failed Breakout: Despite positive news (leaving CPO status), GGAL failed to overcome a significant downward trendline resistance throughout the week.
🛡️ Defensive Sell: The decision to sell was made to protect capital from a potential pullback, as the failure at resistance suggests short-term weakness.
🔄 Re-entry Strategy: The analyst plans to re-enter GGAL either on a pullback to moving average support or if the stock decisively breaks the aforementioned downward trendline.
@ClaveBursatilTV:
“We had bought on this green candle here, then we took the whole hit from the tariffs, and we sold this week. So, if I measure when I bought versus when I sold, assuming you surpassed the base price close, we gained 5.79% in dollars. Now, in pesos, I have no idea what this yielded, but in dollars, it’s 5.79%. So that’s always interesting to keep in mind. How do I measure my profit in dollars? I measure it in TradingView; I tell it if you bought here and sold here, that’s it, that’s what you earned. Now, there can obviously be arbitrage, there can be a movement of the CEDAR itself due to the CCL, and maybe it doesn’t give you exactly 5.79%, but more or less, it should give you this value. Because someone might say, ‘No, but it doesn’t give that because you have to take into account…’ Okay, that’s correct. But roughly speaking, let’s say to get a fairly close idea, you can do it this way. Afterwards, well, you might need a spreadsheet, perhaps Google Sheets and so on, where you note down your prices because the broker generally doesn’t show you this information precisely. Now, why did we decide to sell it? Because one might say, ‘Well, but if Argentina is booming, why did you sell?’ Well, I sold because it couldn’t get past this downward trend line all week, which had already acted as dynamic resistance, and it couldn’t pass it even with the positive momentum from the CPO. Now, we sold because this movement could happen, but it’s not to leave Argentina; I want to get back in. The thing is, I want to get back in at a price I like more. Either we re-enter when it drops to the moving averages, or here, notice I have a dotted line; it’s a buy alert. If it breaks that upward trend line, which relates to these lows here, and would obviously break this downward trend line, we will buy again. So, that’s how the trade works, right? Because someone might say, ‘Well, but if you do that and sold here, you lost this whole stretch and also lost the commissions.’ Okay, that’s the price to pay to avoid taking the hit on the downside. Because, of course, if I knew it was going to do that, I wouldn’t sell, but we don’t know. It could go down. So, to protect myself from taking the hit, I sell here. And if it doesn’t go down and breaks upwards and is going to continue rising, well, I enter a little higher; it’s okay not to gain a little bit more. That is, you wouldn’t be losing; you’d be gaining less if this continues to rise later. And that’s kind of the idea.”
Watch the exact part of the video where @ClaveBursatilTV talks about Grupo Financiero Galicia here:
Watch the video on YouTube
Read more articles analyzing Grupo Financiero Galicia (GGAL) at the provided link. GGAL stock.
