I want to wish everyone Kung Hei Fat Choi or a Happy Chinese New Year as we enter the year of the metallic rabbit. And why not celebrate it with a bottle or two of San Miguel Beer? Well, it’s not exactly like the Tsingtao Beer of China but it’s actually way better! San Miguel Brewery or SMB in the Philippine Stock Exchange is the largest producer of beer in the Philippines. Its flagship brand, San Miguel Pale Pilsen, is exported not only in Asia but all over the world. Having said that, drinking some not only makes people light on their heads but it could also have them profit a buck or two.
Back in January 10, I mentioned that something could be brewing with SMB (kindly see my post here). Back then, I thought that it was already poised for an upside breakout from either an ascending triangle or a pennant pattern. However, that did not happen until earlier today (February 3, 2011) when it rose by 10% from an opening of PHP 29.00 to a closing of PHP 33.00. As you can see from its chart above, the breakout was accompanied by a relative rise in volume. It also closed on its high which signifies optimism among its buyers. Moreover, the MACD also made a bullish crossover, suggesting that SMB could start to ascend once more. So given today’s price action, an upside target of PHP 41.50 or even PHP 50.60 could be derived.