It’s been quite a good run for Megaworld (MEG) since March as well as the as the Philippine stock market as a whole. If you bought the stock back then in the 0,40 Philippine Peso area, its value is more than doubled now. The stock still has a big room for appreciation based on my technical analysis. A mini-triangle or the so-called flag chart pattern (indicated by the red diagonal lines) is currently forming and bound to breakout anytime if the price surges above the resistance line (topmost red diagonal line). If everything goes well, I set my target price at 1.16. Click image to enlarge!
Archives for May 2009
The Philippine stock market has been going up for 2 months now as reflected by PSEi, the main index. PSEi looks quite intact in its uptrend as long as its value is maintained above the immediate support line (violet dotted line). Click image to enlarge!
A bank pick of mine from the Philippine stock market would be Union Bank of the Philippines. This isn’t because I love the bank but its stock price is showing signs of bullishnes. In the chart we have here, we can see that UBP had come out of its downward resistance (green dotted line) last February and now it’s consolidating sideways. As far as I can see, a possible cup and handle chart pattern (biggest red arc idicates the cup and the small red arc indicates the handle) is being formed in the chart. This will only be confirmed once the price passes thru the resistance line (red horizontal line) or breaks out of the cup and handle with my minimum target price set at 33. Click image to enlarge!
Globe Telecom (GLO) of the Philippine stock market moved out of its 1-year downward resistance (green dotted line) early March of 2009 and went sideways. While consolidating sideways, it made an ascending triangle (as indicated by the 2 red horizontal lines) formation. Globe currently broke out from the ascending triangle in the latest market session by closing at 900 pesos per share passing thru the 875 resistance line (topmost red horizontal line) of the said area pattern. Well, I’m no fundamentalist here but I can back it up by fundamentals haha. You guys know the “Globe Duo”? Globe Duo’s sales are probably high and has lured and still luring many people to avail it. This may be a cause for the increase of Globe Telecom’s stock value. I’ll set my target price for this at 980. It’s uncertain to say that it will definitely reach my target price because there are chances it won’t but if you ask me, I’ll bet on the upside. Click image to enlarge!
As we can see, the PSEi has achieved it’s target price after breaking out from a symmetrical triangle (encircled with yellow) and its downward resistance (green dotted line) late March. Is it now time for the PSEi to go back dropping again after weeks of good runs?! I hope not. Personally, I’m really bullish with the Philippine stock market as well as the US market but it just needs to correct. Click image to enlarge!
The stock was able to achieve its minimum target price of 0.13. Congratulations to those who had it. Kudos to the stock market!
Three current images of LC charts are shown. First chart dates back from the 1980’s, the next is its 4 year chart and the last is a view of a 1 year timeframe. Looking at the bigger picture as seen in the first image, the current price level of LC is almost the same as the 1980’s. It has gone way up and back to where it all started passing thru numerous ups and downs. This was made possible by the terrible stock market conditions. In the second image, the resistance line (green dotted diagonal line) of the downtrend has been broken (price passing through the resistance line) as the price of the stock goes sideways. The last image shows clearly that LC had hopefully reached the bottom from its year of decline as it breaks out from a reversal chart pattern, the inverted head and shoulders (3 arcs: The head is the biggest red arc and the shoulders are the arcs beside it ). The breakout occured during the Friday session when the price passed through the necline (red horizontal line) despite the US market’s decline the night before. I place my minimum target price at 0.13. Click image to enlarge!