Hello beer lovers! When you hear the word “San Miguel”, the first thing that comes into your mind is the awesome beer they produce. However, I’m not here to discuss about their beer but instead show you the outstanding movement of the San Miguel stocks. Before that, for those who do not know, San Miguel Brewery Inc. or SMB in the Philippine Stock Exchange is the producer of the world-famous San Miguel Beer (ligh, premium and pale pilsen). They also produce the Red Horse Beer and the malt-based non-alcoholic drink, Cali. Anyway, the SMB stocks have been significantly going up for more than a week now after it had been consolidating sideways since it was publicly listed in the Philippine Stock Exchange last May 2008. Amazingly, the break of the 2-year resistance changed the boring stock movement. From 9.50 pesos last November 10, it shot up to the current value of 27.05 pesos in just 9 trading days. That’s almost a 300% gain!!!
Chart-wise, the current resistance is the 28.30 peso all-time high. If the SMB stocks continue to rise and manage to break above that marker despite the heavy selling pressure it could encounter, the next resistance could be the 30.00 peso psychological level. On the downside, in case the San Mig stocks get drunk and start to decline, the support I’m looking into is the 25 peso psychological level. It’s really hard to spot the significant levels since the chart lacks data because of the sudden upswing of the SMB stocks, but personally, in case the stocks further drop below that price mark, the next support I’d be looking into is 20 pesos.