Happy Easter everyone! I hope all of you have enjoyed this much-needed vacation. Anyway, let’s go back to regular programming with my take on RFM Corporation.

Concepcion-led RFM Corporation has been under the radar for the last several years. To make the story short, the performance of its shares has been a major disappointment to its investors as it consistently underperformed the PSEi. Recently, however, has gained some fans as it rose from Php1.19/share to start the year to Php2.13/share last Wednesday! Now, one might ask given its recent run, “isn’t already too high to go long?”

Zooming out to its 10-year chart, I was surprised to see a huge inverted head and shoulders pattern that it had formed. With an apparent neckline resistance at around Php2.00, a successful move above this level could jockey it higher to just below Php4.00. But first, it has to clear it’s high at Php2.20. Now, given its ‘breakout’ from a pennant pattern over the 6-month time frame, a valid breakout from the bigger inverted kilroy or head and shoulders could be in the works. On the downside, a failure to move past the Php2.20 high could send it back down perhaps to Php1.80.

Let’s see how this will go over the next couple of days or weeks.

Related posts:

1. Century Peak Metals Holdings Corporation (CPM) Reversing Its Course! The stocks of Century Peak Metals Holdings Corporation or CPM...
2. Filinvest Land Inc (FLI) To Follow Megaworld Corporation (MEG)? Filinvest Land’s (FLI) 4% gain today with the sudden surge...
3. Bullish Reversal On Global-Estate Resorts, Inc. (GERI)? Andrew Tan’s Global-Estate Resorts, Inc. (GERI), formerly known as Fil-Estate...

Related posts brought to you by Yet Another Related Posts Plugin.

Good day everyone. It’s been a while since my last post but I’m back to give my two cents on a couple of stocks that could potentially have more upside despite the market’s continued run-up. By the way, the PSEi is bound for a bearish reversal soon… Sike! Happy April Fools Day!

Majority of the companies listed in the Philippine Stock Exchange have more or less made an upward move already. So I asked myself a question, “If I am to invest now, where will I place my money?” Obviously I scanned through the charts of several stocks and I still found quite a handful. One of them is the Philodrill Corporation or OV.

Well from a technical point of view, OV looks to be on a verge of another steep up move as it sits on a beautifully drawn symmetrical triangle. OV could even be coming from a tall bullish pennant pattern upon zooming out its chart. In any case, a breakout from the formation could send it all the way to Php 0.080/share ( as gauged by the height of the ‘pole’). On the flip side, a failure to move past Php 0.055 or a move below Php 0.50 could pull it back to Php 0.040.

Related posts:

1. Philex Mining Corporation (PX) Racks Up More Gains! Philex Mining Corporation (PX) was one of the main guys...
2. Global-Estate Resorts, Inc. Paced For A Move Higher? Andrew Tan-led Global-Estate Resorts, Inc. (GERI), formerly known as Fil-Estate...
3. First Philippine Holdings Corporation (FPH) Looks Technically Promising First Philippine Holdings Corporation’s (FPH) technical set-up looks very promising....

Related posts brought to you by Yet Another Related Posts Plugin.

The Pipe Line story is a classic story (in cartoon form for a couple of years now) about two friends, faced with a business challenge, and their different approaches to that challenge.

The business challenge was getting water from the top of a mountain, to the village down below. Anyone to do that would be compensated for their work.

One friend took the traditional route to solve the problem.
He worked hard.
He carried bucket after bucket, made trip after trip, and earned his keep.

So he started working harder.
He worked longer hours.
He used larger buckets.
And he earned more money as a result.

The other friend, after also taking the traditional approach for a while, decided to stop and think about how he could be more effective.

He decided to build a pipeline.
His work took much longer. His income reduced greatly, as much of his time was spent building this pipeline. (Which wasn’t bringing any water, so far, to the village. And thus, wasn’t earning him any income.)

Everyone called him crazy. Even his friend with the buckets.
Two years later, the pipeline started to work. Water started to flow. And so did his income.
He was able to stop working, but have money coming in to him every day.

While his friend with the buckets, was stuck with his job… and stuck with no income if he stopped working.

This metaphor describes the traditional 9-to-5 employee, versus the entrepreneur that builds a system which can generate passive income.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

The US dollar had rebounded strongly after it suffered a sharp dip against the Swiss franc last August 2011. After reaching a low of 0.7066, the USD/CHF pair is now back above 0.9200. The question now is, will the USD sustain its recent run versus the CHF?

As you can see from the pair’s daily chart above, it appears the it could indeed sustain its recent rally and even move into greater heights. From March until November 2011, the pair had formed what seems to be a cup and handle pattern (one with a rather sharp or pointed cup) which it broke last December. The pair’s upward momentum looks to have slowed a bit, causing it to make a “return move” back to the pattern’s neckline. Presently, the pair is trading right smack at the neckline just above 0.9250. This level could now act as a support and a spring board to push it back up. Notice also that there is a presence of a hidden bullish divergence where the price makes higher lows and the stochastics register lower lows. This plus the fact that it is trading at an oversold condition could indicate a pick up in prices at least in the near term.

If indeed the USD’s price picks up against the swissy, the pair could reach parity again (could hit the psychological 1.000 level). A break above it could send it higher towards a target of 1.1500 as gauged by projecting the height of the pattern from the point of breakout. On the sour note, a fall below the neckline could send the pair to the 0.9000 marker.

Related posts:

1. Euro To Bounce Back Against The Greenback? The euro got hammered by the us dollar during the...
2. The Year Of The Japanese Yen The world of currency trading has been on extreme volatility...

Related posts brought to you by Yet Another Related Posts Plugin.

Andrew Tan’s Global-Estate Resorts, Inc. (GERI), formerly known as Fil-Estate Land, Inc., (LND) appears to be on track to move even higher in the coming days or weeks. Let me tell you why.

From a technical standpoint, GERI looks to have been forming a double bottom pattern as you can see in its daily chart above. Consequently, its trading volume over the same time period also shows a similar pattern which is very typical of a major move that is about to happen soon. In any case, a critical resistance at PHP2.40 needs to be taken out. A break above this level could send GERI to at least PHP2.80 (gauged by projecting the height of the formation from the point of possible breakout). A fall below PHP2.20, on the one hand, could pull it down to PHP2.0.

Given its present set-up, GERI looks to be ripe for a ‘breakout’ in the days to come. Let’s see if this will happen.

Related posts:

1. Bullish Setup Seen In Global-Estate Resorts, Inc. (GERI) Last July, Global-Estate Resorts, Inc. (GERI) broke out from a...
2. Global-Estate Resorts, Inc. Paced For A Move Higher? Andrew Tan-led Global-Estate Resorts, Inc. (GERI), formerly known as Fil-Estate...

Related posts brought to you by Yet Another Related Posts Plugin.

When: January 21, 2012, 1 pm to 6 pm

Where: Sunlife Training Center, 7/F ACE Bldg, Rada cor Dela Rosa St., Makati City

                                        Speakers and Topics:

                    “Philippine Business Trends and Outlook for 2012″

-Ms. Cora Guidote, Vice President, SM Investments Corporation

                    “Philippine Business Trends and Outlook for 2012″

-Ms. Cora Guidote, Vice President, SM Investments Corporation

                    “Philippine Stock Market Outlook for 2012″

-Mr. Gus Cosio, President, First Metro Asset Management Inc.

                    “Philippine Economic Outlook for 2012″

-Prof. Ben Diokno, UP School of Economics

*Our regular rate is P3,000 but if they pre-register on or before January 15 (Sunday), they can avail of our early bird rate of P1,500. We have additional discounts for groups of 3 who pre-register.

For inquiries, you can contact Biz Whiz at 975-9559 / 0917-8594891 or via email bizwhizconsultancy@yahoo.com. Slots are limited.

Related posts:

1. Potential Upside Seen In The Philodrill Corporation (OV) The Philodrill Corporation or OV in the Philippine Stock Exchange,...
2. EEI Corporation (EEI) To Yield Positive Returns In 2012? Yuchengco’s construction arm, EEI Corporation (EEI) could start the new...

Related posts brought to you by Yet Another Related Posts Plugin.

Related posts:

1. Possible Turnaround On Holcim Philippines, Inc. (HLCM) Risk appetite sided on infrastructure plays like Holcim Philippines, Inc....
2. Top 40 Philippines’ Richest BROWSE THE LIST Rank Name Net Worth ($mil) Age 1...
3. Choose Philippines Have you discovered the true Philippines?     C-Culture H-History...

Related posts brought to you by Yet Another Related Posts Plugin.

As gold tries to rebound from its 3-year uptrend line (kindly see my colleague’s post here), gold mining companies would most likely rebound as well but with what can be seen in Lepanto Consolidated Mining Company “A” or LC as listed in the Philippine Stock Exchange is more than just a rebound.

Technically, LC’s 5.7% gain today gave its stock chart a sexier look. This move drew clearer the possible handle of what could be a 5-month cup and handle chart pattern. If you look at the picture above, a breakout from the cup and handle could bring LC to new highs. With the MACD bound for a bullish crossover and the price slowly ascending above the 50, 100 and 200-day moving averages, a breakout is more likely to happen. Once the 1.82 all-time high or the cup and handle neckline is breached, we could get a minimum target price of PHP2.30. This I got by adding the size of the cup to the possible breakout point. However, there could be some selling pressure at the PHP2.00 psychological level. On the downside, PHP1.54 is the immediate support. If that breaks, the next support could be the 1-year uptrend.

Related posts:

1. Lepanto Consolidated Mining Company (LC/B) To Wilt? The shares of Lepanto Consolidated Mining Company (both A and...
2. More Gold In Lepanto Consolidated Mining Company B (LCB)? The “B” shares of Lepanto Consolidated Mining Company has been...
3. Lepanto Consolidated Mining Company A (LC) To Rise Again The A shares of Felipe Yap’s Lepanto Consolidated Mining Company...

Related posts brought to you by Yet Another Related Posts Plugin.

Risk appetite sided on infrastructure plays like Holcim Philippines, Inc. or HLCM in the Philippine Stock Exchange n expectations that the Philippine national government will speed up its infrastructure projects. HLCM, being one of the major listed supplier of cement in the country, benefited from this as reflected in the 5.32% gain in its share prices today (January 2, 2012).

As can be seen in its chart above, HLCM has been consolidating in what appears to be a rounding bottom pattern. Today, it attempted to move above PHP 10.00. Some selling pressure, however, was met when it hit a resistance at its former lows and at its downtrend line. Given this, HLCM could first step down and correct before gathering enough momentum to eventually move above PHP 10.00. HLCM’s formation then could shift from a rounding bottom into possibly a cup and handle. Either way, a breach of the said resistance could send it at least towards PHP 12.00 (gauged by projecting the height of the pattern from the point of possible breakout). Such could potentially give one a handsome 20% return in the short run.

Related posts:

1. EEI Corporation (EEI) To Yield Positive Returns In 2012? Yuchengco’s construction arm, EEI Corporation (EEI) could start the new...
2. Choose Philippines Have you discovered the true Philippines?     C-Culture H-History...

Related posts brought to you by Yet Another Related Posts Plugin.

The Philodrill Corporation or OV in the Philippine Stock Exchange, a company, engaged in oil exploration and production in the Galoc oil field in Palawan had its net income soar by 159% to PHP 957 million in the first 9 months of 2011 compared to the previous year. Its share price, as a result, also jumped to as high as PHP 0.023 after trading flat below PHP 0.015 during the first half of the year.

Now given its movement during the second half of 2011, it appears that OV could still go much higher. As you can see from its weekly chart above, OV has consolidated within an ascending triangle formation. During this time, its trading volume has noticeably declined. This divergence between consolidating prices and declining volume, I must say, is a characteristic of a potential upside breakout in the horizon. Should OV breaks the heavy resistance at PHP 0.023, it could jet all the way up and revisit its all-time high at PHP 0.031. But before jumping in and going long, it is best to wait for a significant move above PHP 0.023 which is accompanied by a spike in volume. A stop loss trigger then could be placed around PHP 0.020 in case the trade does not go our way.

Related posts:

1. Lepanto Consolidated Mining (LC) Likely To Hit PHP 1.00 Hot shot Lepanto Consolidated Mining Corporation or LC in the...
2. Is It Time For Rizal Commercial Banking Corporation (RCB)? For almost a year, Rizal Commercial Banking Corporation or RCB in...

Related posts brought to you by Yet Another Related Posts Plugin.

Yuchengco’s construction arm, EEI Corporation (EEI) could start the new year on a positive note given its fundamental and technical prospects.

For those who does not know, EEI Corporation is one of the leading construction companies in the Philippines. Over the last couple of decades, it has constructed several notable power plants, refineries, buildings, flyovers and highways, etc. Given its know-how and experience in doing such projects, is it in the best position to benefit from the impending roll-out of the government’s Public-Private-Partnership (PPP) projects. EEI will not directly participate in these projects but will be the sub-contractor of choice by the winning companies like DMC, SMC, AC, MPI and so on. This in turn could ramp up its revenues for the next coming years which should reflect on its share price.

From a technical standpoint, EEI has recently broken out from either an inverted head and shoulders or a cup and handle pattern when it moved above the PHP 3.40 resistance. Its trading condition, however, is already overbought as can be seen at its RSI which means that it could first correct before it moves up again. Moreover, a presence of a shooting star pattern also indicate a likely dip in the very near term. Nonetheless, the neckline of the PHP 3.40 level should keep EEI afloat. Now, judging by the height of the pattern, EEI has a potential to reach at least PHP 4.00 if it is able to keep itself above PHP 3.40.

Related posts:

1. Meralco (MER) Lifted The PSEi Towards The Positive Territory! The stocks of Manila Electric Company (MER) or Meralco as...
2. Universal Robina Corporation (URC) To Hit PHP 45.00? Another John Gokongwei – led company, namely Universal Robina Corporation...
3. Bullish Call On ISM Communications Corporation   Roberto Ongpin-chaired ISM Communications Corporation or simply ISM in...

Related posts brought to you by Yet Another Related Posts Plugin.

As I mentioned in my post last year “the Santa Claus rally is the rise in stock prices in the month of December and is usually seen on December 26 to December 31 in most stock markets worldwide. However, it doesn’t happen at the exact dates mentioned but yes, it usually takes place after Christmas day and before New Year’s eve. The usual factors behind the Santa Claus Rally phenomenon includes people trying to complete trades and make adjustments for tax purposes, happiness around Wall Street that triggers buying, injection of additional funds into the market including people who are investing their Christmas bonuses and the fact that the pessimists are usually on vacation this week to gain some positivity and good vibes”.

Technically, the Santa Claus rally is more likely to hit the  Dow Jones Industrial Average (DJI) once again because of its current chart setup. As you can see, there could be an 8-month inverted head and shoulders forming with the right shoulder looking like a small ascending triangle. In addition, the MACD has made a bullish crossover and the index is now moving above the 50, 100 and 200-day moving averages. With these indicators in-line, we could expect the DJI to breakout from this bullish chart pattern soon. If it does, our target could be the 13,500 marker. However, there could be some resistances at the 12,800.00-13,000.00 level.

Remember, when the US stock market goes up, most stock markets usually follow. But then again, this time shouldn’t be given to trading and working since it’s the time to have fun, celebrate the time with our love ones and be thankful of what we have. Let’s share the blessings, cheers and peace to everyone! Happy Holidays and Merry Christmas!

Related posts:

1. A Rally Seen In Lopez Holdings Corporation (LPZ)? Lopez Holdings Corporation or LPZ in the Philippine Stock Exchange...

Related posts brought to you by Yet Another Related Posts Plugin.

The Philippine Stock Exchange (PSE) will implement its new trading hours on January 2, 2012.

Related posts:

1. Philippine Stock Exchange Property Index At A Glance For the past 10-months, the Philippine Stock Exchange Property Index...
2. Philippine National Bank (PNB) To Make Some Noise? Rumors of a possible merger by Lucio Tan-led Philippine National...
3. First Philippine Holdings (FPH) Gearing For a Move Up? First Philippine Holdings or FPH has been performing relatively well...

Related posts brought to you by Yet Another Related Posts Plugin.

The Banko Sentral ng Pilipinas (BSP) will circulate new one peso coins that commemorate Jose Rizal’s 150th birthday.

The BSP will mint 10 million pieces of this new coin which will be circulated starting this month of December 2011.

Related posts:

1. Pilipinas, Tara Na! v.1 Ang bawat Pilipino ay hinihikayat na makibahagi sa pagpapaunlad ng...
2. Lopez Holdings (LPZ) To Score Higher? Lopez Holdings Corporation or LPZ in the Philippine Stock Exchange...

Related posts brought to you by Yet Another Related Posts Plugin.

Just last September 2011, gold (XAU/USD) reached a new all-time high of just above 1,900.00 US dollar per ounce. Investors’ hedging against capital losses due to the economic risks in Europe and the US was the primary reason of this ascent. This past several days, however, gold has slipped sharply.

After ranging for a while between $1,700 and $1,750 two weeks ago, gold has suddenly slipped past the $1,700 support all the way below $1,600 in just a matter of 3 days. Despite this, it appears though that gold’s long term support is keeping it afloat. As you can see from its chart above, its recent slide drove it down smack right at its primary uptrend line. This line, in my opinion, should hold. And if it does, a rebound in gold price could be seen soon. Revisiting the $1,800 level and even back to its all-time high. A break, however, of its long term support could send it down further to $1,500 or even to $1,400.

By the way, if you check out the chart of Philex Mining Corporation, it looks similar to gold’s (kindly check my colleague’s post here).

Related posts:

1. Technical Update On WTI Crude Oil Volatility in the world crude oil prices (WTI crude oil)...

Related posts brought to you by Yet Another Related Posts Plugin.

The 4% drop in gold price yesterday coupled with unfavorable news in the Euro zone triggered a minor sell off in some mining stocks in the Philippine Stock Exchange today. Some of them include Lepanto Consolidated Mining Companies A and B (LC/LCB), Atlas Consolidated Mining & Development Corporation (AT) and Philex Mining Corporation (PX) which were down by around 5%. Among the 3 mentioned stocks though, Philex Mining Corporation could still be the most attractive at this point in time.

Technically, Philex Mining seems to be at a weak state given that it has broken below its 50, 100 and 200-day moving averages as well as its MACD sliding at the negative territory. Although bearish in short term, Philex Mining appears to be sitting right at its 1-year uptrend and could possibly bounce back up since this level opens up buying opportunity for some traders, investors or even managed funds. If Philex Mining rebounds, the immediate resistance we could look at is the 4-month downtrend line. If that breaks, the next resistance could be Php23.50 marker. On the downside, Php20.00 is a strong  technical and psychological level of support. If that breaks, the next support could be Php18.50.

Related posts:

1. Philex Mining Corporation (PX) Racks Up More Gains! Philex Mining Corporation (PX) was one of the main guys...
2. Is Philex Mining (PX) Bound For Some Correction? Manny Pangilinan-chaired Philex Mining Corporation (PX) has been having a...

Related posts brought to you by Yet Another Related Posts Plugin.

The shares of Lepanto Consolidated Mining Company (both A and B) have been amazing in 2011 as they delivered gains of about 300%. Improving company prospects, buy-ins from a bigger company – Philex, and the jump in gold prices, have generated a lot of support and push for the company’s shares. However, the latest drop in commodity prices and the unwinding of huge funds could weigh in on LC and LCB.

Technically, the A shares of Lepanto (LC) have risen back to its former high at just above PHP 1.80. However, it appears that LC has been having a hard time moving above this resistance. A bearish divergence from the price action, volume, MACD, and RSI can also be seen. On the fundamental note, the 4% slip of gold yesterday (December 14, 2011) down to below 1,600.00 US dollar per ounce could likewise cause some selling pressure on this gold miner. Profit taking action by investors as the year comes to a close could also cause its support to shrink. In any case, if a correction happens, its price could fall back to PHP 1.60 or even to PHP 1.40 in the near term.

Related posts:

1. More Gold In Lepanto Consolidated Mining Company B (LCB)? The “B” shares of Lepanto Consolidated Mining Company has been...
2. Lepanto Consolidated Mining Company A (LC) To Rise Again The A shares of Felipe Yap’s Lepanto Consolidated Mining Company...
3. Lepanto Consolidated Mining (LC) Likely To Hit PHP 1.00 Hot shot Lepanto Consolidated Mining Corporation or LC in the...

Related posts brought to you by Yet Another Related Posts Plugin.

Lopez Holdings Corporation or LPZ in the Philippine Stock Exchange caught the attention of many traders yesterday (December 13, 2011) when it rose by 4.31% to close at PHP 5.08. Noticeably, yesterday’s trading volume also soared to its two-month high, suggesting that a move higher could likely be sustained.

LPZ is one of the few remaining stocks that has a bullish technical set-up. From a high of PHP 6.95 last May, LPZ had fallen to a low of PHP 4.00. Since then, it has consolidated in to what appears to be a cup and handle pattern. See that during this time its trading volume looks to represent a cup and handle as well. And with yesterday’s move above the pattern’s neckline at PHP 5.00, LPZ could hit a target of PHP 6.00, as gauged by the height of the cup, if it is able to keep its head above PHP 5.00.

Related posts:

1. A Rally Seen In Lopez Holdings Corporation (LPZ)? Lopez Holdings Corporation or LPZ in the Philippine Stock Exchange...
2. Global-Estate Resorts, Inc. Paced For A Move Higher? Andrew Tan-led Global-Estate Resorts, Inc. (GERI), formerly known as Fil-Estate...
3. Empire East Land Holdings, Inc. (ELI) To Reach PHP 1.00? It’s the Book Of Eli Part 2 (part 1)! Couple...

Related posts brought to you by Yet Another Related Posts Plugin.

APC Group Inc. or APC as listed in the Philippine Stock Exchange hasn’t made a bullish statement in almost a year. In fact, its stock value had dropped from this year’s high of PHP 0.97 all the way to PHP 0.45. The good news is, the 1-year downtrend line was broken a month ago and now the stocks’ bias is more likely on the upside.

APC’s outstanding 4.9% gain today formed the right shoulder of a possible inverted head and shoulders formation after it retested the previous downtrend line. Technically, this is a bullish reversal setup as many of you might know. Aside from that, today’s volume was beefed up with significant buying activity and hugh crosses. If the buying pressure breaks the neckline of the inverted head and shoulders, based on its size, we can get a minimum target price of PHP 0.80. Although there could be some selling pressure at the PHP 0.75 resistance level on the way up.

The indicators are also showing positive signs for the APC stocks. The MACD is about to make a bullish crossover and the RSI stabilized. The stock price has breached above the 50 and 100-day moving averages with the 200-day moving average next in line. With these in line along with the inverted head and shoulders setup, an upward swing could likely occur soon. Still, there’s always the downside, so in case APC fails to climb up, I’d set my stop loss below the PHP0.58 support or at the breakdown of  the 2-month uptrend.

Related posts:

1. A Rally Seen In Lopez Holdings Corporation (LPZ)? Lopez Holdings Corporation or LPZ in the Philippine Stock Exchange...

Related posts brought to you by Yet Another Related Posts Plugin.

According to news reports, the initial public offering of Cirtek Holdings Philippines Corporation (or CHIPS, its stock symbol), on the November 18, 2011 listing date, is oversubscribed by more than four times the allotment.

This demand alone could crazily drive up its price. Yet, market sentiments aren’t enough for smart investing or short-term trading. For those interested in looking at the company’s background, this link provides some helpful information about it: Cirtek

On the other hand, most technical analysts also wouldn’t agree on purchasing Cirtek IPO based on its fundamentals and market sentiments. Personally, I would want to see the Cirtek stock chart with at least a year of historical data but there’s none. So the closest I can get into grasping its chart is by looking at its industry background.

The PHLX Semiconductor Sector (^SOX) is a Philadelphia Stock Exchange capitalization-weighted index on which the companies part of it are involved in the design, distribution, manufacture, and sale of semiconductors. As the short term chart suggests, ^SOX could be primed for a bullish move if it successfully breaks out from the double bottom formation. If you notice, there is also 1-month symmetrical triangle setting up for the double bottom’s possible breakout. If this happens, the 9-month resistance would be broken as well and there will be a bigger upside target. With the fundamentals and technicals provided, now it is up to you to decide on how to trade CHIPS.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

Happy Halloween everyone! I don’t want to scare you or anything but it seems that there could be another blood bath in the US market at least from a technical perspective. Let’s now take a look at the Dow Jones Industrial Average (DJIA).

As you can see from its chart above, the ^DJI or simply the Dow had already broken down from a bearish head and shoulders formation and more importantly from its long term uptrend line. A combination of weakening US economic data, US debt problem and the fiscal crisis in the euro zone have shackled the US equities market to its knees. From a peak of 12,876 last May 2011, the DJIA had found itself to a low of 10,500 last month. Although news of improving business conditions in the country plus the agreement on how to shore up the financial situation in Europe has pushed the index to rebound to a high of 12,284 just the other day.

However, things now could turn sour again as the index finds a resistance at the neckline of the head and shoulders pattern. If it is not able to keep itself back above the said neckline in the coming days or weeks, then it is likely to revisit at least the 11,500 area again. In my opinion, this recent rally has given us a window to liquidate our long positions and stay liquid. From a technical point of view, the probability of the index turning bad again remains high therefore I think that it is more prudent to at least lighten up on being long or to even turn to cash. But that’s just me. If things turn good and the index manages to  streak past above its all-time high then I would only lose this opportunity rather than continue to bet now and risk losing money.

Related posts:

1. Dow Jones Industrial Average (^DJI) Technical Outlook The Dow Jones Industrial Average (^DJI) broke down from its...
2. More Downside Seen In The Dow Jones Industrial Average (^DJI)? Could the Dow Jones Industrial Average (^DJI) continue its descent? In...
3. DOWn Jones: Where To Now? The Dow Jones Industrial Average has been a major disappointment...

Related posts brought to you by Yet Another Related Posts Plugin.

In my analysis, the Euro could further weaken against the US dollar currency pair (EUR/USD). If you look at its 8-hour chart posted on the canvass, the forex pair tested the established resistance of the 1-month descending channel and bounced back down after the news that Fitch downgraded last Friday Italy’s sovereign credit rate from AA- to A+. By the way, the price also respected the SMA (14) as its resistance in the daily chart below. Anyway, with the MACD also suggesting a bearish crossover in the 8-hour chart, the current value could be a strategic short sell entry with a target price of 1.3000 which is both psychological and technical level of support. In any case this possible trade goes wrong, I’d cut above the descending channel’s resistance. If that’s too deep a 40-pip stop loss would do for me. 

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

Manny Pangilinan-chaired Philex Mining Corporation or PX in the Philippine Stock Exchange had made a nose dive after hitting alightly past Php 28.00. The question now is, will PX be able to reverse its recent demise?

Basaed on its weekly chart, PX could find some life soon. As you can see, its former high at around Php 20.00 has halted its decline. Its long term support has likewise carried it afloat. Moreover, the presence of a bullish hammer candlestick plus an inside bar which happens to be a doji as well suggests that its luck could pick up in the near term. Given these posotive technical indicators, there’s a good chance that we could indeed see a rally in this stock.

Related posts:

1. Philex Mining Corporation (PX) To Regain Its Luster Philex Mining Corporation (PX) has been having some rough days...
2. Is Philex Mining (PX) Bound For Some Correction? Manny Pangilinan-chaired Philex Mining Corporation (PX) has been having a...
3. Philex Mining Corporation (PX) Racks Up More Gains! Philex Mining Corporation (PX) was one of the main guys...

Related posts brought to you by Yet Another Related Posts Plugin.

While the outlook of the Philippine Composite Index seems somewhat bleak (please see my post on the PCOMP here), the Philippine Mining & Oil sector or PMINI appears to be the only one that could turn north.

The PMINI had been the lone star for the Philippine stock index when it reached a high of 26,000 last August from just around 12,000 to  start the year. However since marking the said high, the sector plunged sharply and is now trading just below 20,000. This slide, in my opinion was due since the index had just been moving north ever since. Having said that, it is quite possible that the PMINI could turn its fortunes to positive again.

As you can see from its weekly chart, the sector had fallen right smack at its long term uptrend line. While this uptrend support appears a bit shallow, this could still keep the whole sector afloat. Also, a bullish hammer candlestick pattern has formed following its steep decline. This pattern suggests a possible bullish turnaround in prices at least in the near term. Additionally, the hammer pattern was also followed by an inside bar candle formation which also indicates the same scenario. Moreover, the 50% Fibonacci retracement level appears to be holding it afloat as well. Given these positive technical signals that are present at the same time, it is quite possible that the sector could indeed turn north soon.

Let us see is this pans out true.

Related posts:

1. JG Summit Holdings Primed To Move Higher? JG Summit Holdings or JGS in the Philippine Stock Exchange...
2. Lepanto Consolidated Mining Company A (LC) To Rise Again The A shares of Felipe Yap’s Lepanto Consolidated Mining Company...

Related posts brought to you by Yet Another Related Posts Plugin.

In my point of view, IP E-Game Ventures, Inc. or EG as listed in the Philippine Stock Exchange could be bottoming given its current technical setup. The stocks have moved passed above the 50, 100 and 200-day moving averages with significant volume building up the past 2 months. At the same time, there seems to be a 1-year cup and handle pattern forming with the neckline at PHP35.50. A break above the cup and handle’s neckline could drive the stocks all the way to the PHP58.00 resistance based on its size. However, significant selling pressure might be experienced at the PHP40.00 and PHP50.00 psychological levels on its move up. If things don’t go out well for EG like most of the publicly traded stocks right now, I’d cut my losses if the PHP20.00 support breaks. If that cut is too deep, a breakdown from the 2-month support could also be a strategic exit point.

Related posts:

1. First Philippine Holdings (FPH) Gearing For a Move Up? First Philippine Holdings or FPH has been performing relatively well...

Related posts brought to you by Yet Another Related Posts Plugin.

The outlook for the Philippine Composite Index (PCOMP) has turned sour when it broke its long term support a couple of weeks back. Over a longer term, though, it seems that the index could fall into a deeper ditch.

But before the index plunges, it could first rally up to around 4,100 to 4,300 as what I’ve written in my previous post (kindly see it here). As you can see on its weekly chart, the index has formed a bullish hammer candlestick pattern following its sharp descent. This suggests a possible pick up in the near term. However, if you take a look at the index’s movement since October of 2010, a bigger head and shoulders pattern could be forming especially if a rally towards 4,100 to 4,300 occurs. If this is me, I would take a closer look at the coming rally and see if it slows and turns at the level that I mentioned. Because if it does then the index could indeed be forming a big head and shoulders that will eventually reverse the whole uptrend that it had since its bottom back in 2009.

If the recent long term uptrend gets reversed by a succesful breach below 3,700 then the index could fall into one of its Fibonacci retracments levels (38.2%, 50%, 61.8%) which is at 3,500, 3,200, and 2,800, respectively.

Related posts:

1. Bearish Divergence Seen On PCOMP For the week starting July 11, 2011, it seems that...
2. PSEi: Still On A Red Alert Things appear to be a little bit more gloomy for...
3. PSEi: Testing Some Major Supports The Philippine Stock Exchange Index (PSEi) or PCOMP has been...

Related posts brought to you by Yet Another Related Posts Plugin.

Things appear to be a little bit more gloomy for the Philippine Stock Exchange Index or the PSEi in the near term at least from a technical perspective.

As you can see from its daily chart above, the PSEi or the PCOMP has already broken down from a small head and shoulders pattern. Now after dropping to a low of 3,715.01 last September 26, 2011, the index managed to rally a bit. Still, the index could rally some more in the days or weeks to come until it sees some resistance at the pattern’s neckline. interestingly, the neckline happens to fall in line also with the 50% Fibonacci retracement level from the index’s peak just above 4,500 to its recent low. Given this, some selling pressure could indeed be met once the index reaches the said level. A failure, therefore, to move past 4,150 could send it back down to its recent low at 3,715.01.

So if its me, I will lighten or even consider selling all of my positions once the PCOMP climbs back to around 4,100.

Related posts:

1. A Look At The PSEi It was a wild Friday for the Philippine Stock Exchange...
2. PSEi: Testing Some Major Supports The Philippine Stock Exchange Index (PSEi) or PCOMP has been...

Related posts brought to you by Yet Another Related Posts Plugin.

Technically, Universal Robina Corporation or URC in the Philippine Stock Exchange recently broke down from its primary trend which is the 2-year uptrend along with a head and shoulders formation. If you notice the MACD made a bearish crossover below the 0 line as the break down took place. Based on the size of the head and shoulders pattern, our target price could be the PHP32.20 support. During URC’s 2-year ascent, the 200-day simple moving average (SMA) was respected pretty well. This means it acted as a very strong long term support. However, now that the 200-day SMA has been breached, it’s possible that URC could be at the beginning of its journey downwards.

At present, the stocks‘ immediate resistance could be the head and shoulders’ neckline. Then after that is the 2-month downtrend.

Related posts:

1. Universal Robina Corporation (URC) To Hit PHP 45.00? Another John Gokongwei – led company, namely Universal Robina Corporation...
2. A Rally Seen In Lopez Holdings Corporation (LPZ)? Lopez Holdings Corporation or LPZ in the Philippine Stock Exchange...

Related posts brought to you by Yet Another Related Posts Plugin.

Last July, Global-Estate Resorts, Inc. (GERI) broke out from a  6-month symmetrical triangle formation which propelled its stock price to surge by more than 30% within 2 months. If you notice the symmetrical triangle flirted nicely with the 50 and 100-day moving averages. A bullish crossover on the MACD came along with the triangle breakout as well.

At current, GERI could be making another bullish area pattern which is the falling wedge, accompanied by the diminishing volume. If this is indeed one, based on the pattern’s size, a successful breakout could drive the stocks back to its PHP3.06 all-time high. If that gets broken, the next target could be the PHP3.50 psychological resistance.

For some, a break above the falling wedge’s resistance could be a great entry point. Some would also find the current price a strategic buy. Either ways, in case I’d place a long position on this, I’ll set my stop loss below the 1-year uptrend line. Still, with the uncertainty and volatility in the global markets, it would be wise to lessen your market exposure or even better and safer, stay liquid!

Related posts:

1. Global-Estate Resorts, Inc. Paced For A Move Higher? Andrew Tan-led Global-Estate Resorts, Inc. (GERI), formerly known as Fil-Estate...
2. Megaworld Corporation To Start A Bullish Stardom! My stock pick for this week is none other than...

Related posts brought to you by Yet Another Related Posts Plugin.

Just last September 8, 2011, the shares of SM Prime Holdings, Inc. or SMPH in the Philippine Stock Exchange caught the market’s attention when it suddenly rose by 3.87% on a huge volume to finally break the Php 12.00 barrier. SMPH has continued to rise but now it seems that a temporary correction could be on the watch in the near term.

In my last post about SMPH (kindly see it here), you would see that it had just broken out from a cup and handle pattern. Judging from the height of the formation, I mentioned that it had a potential to go up to around Php 14.00. Now, however, it looks that SMPH has been seeing some resistance at its former all-time high at just above Php 13.00 for the last 2 days. Notice that there is already a bearish divergence between the price and the RSI, suggesting that its up move is starting to lose some momentum. Note also that the volume that pushed it at its new all-time high is not as much as the one that pushed it past the Php 12.00 resistance. Logically, a move higher should be accompanied by a higher amount of volume which is not the case in this one. This further indicates a possible weakness soon. A couple of dojis, one regular and one gravestone doji, at the peak of the recent up, even adds to the possibility of some profit taking actions in the near term. In any case, a correction could lead SMPH back to around Php 12.50. This, in my opinion, would allow it to recoil and build on its momentum for it to eventually reach its target of Php 14.00. On the flip side, all of these bearish signals will be invalidated if SMPH manages to close above its present all-time high for at least 3 days.

Related posts:

1. Is SM Prime Holdings, Inc. (SMPH) In Trouble? Are the bears about to take control of the shares...
2. SM Prime Holdings, Inc. Awakens! After several months of hibernation, the shares of Henry Sy’s...
3. Empire East Land Holdings, Inc. (ELI) To Reach PHP 1.00? It’s the Book Of Eli Part 2 (part 1)! Couple...

Related posts brought to you by Yet Another Related Posts Plugin.