Ayala Land, Inc or ALI in the Philippine Stock Exchange is one of the largest real-estate developers in the country. Its stocks have been rallying the past few days from a low of 14.12 Philippine Peso last Wednesday until today’s high PHP 15.80. However, ALI is on a 5-month downtrend and could further head lower until it reverses its short-term course. If you notice, the stocks have been descending in a range-bound fashion and even respected the resistance during earlier’s trading session. As for the descending channel‘s bias, the MACD at a negative level and the price below the 100 and 200 moving averages, the stocks could continue to drop and if it does, the immediate support could be PHP 14.12. Then the next support after that is the PHP 13.70 price mark. On the flip-side, a breakout from the descending channel could propel the stocks higher to tap the PHP 15.46 resistance. Once that level gets breached, the next resistance could be PHP 15.90.
The Middle East tension has been a reason for the stock markets to decline and commodities to rise. Libya, being one of the world’s 10 richest oil-producing countries, is a big player in the global oil supply chain. With the ongoing uprising in their country, their leader, Muammar al-Gaddafi, seized its oil supply operations and this left a big impact in the world oil market. Oil prices shot up as the demand outweighed the supply. This is one reason why many investors have been pulling out their money in the stock markets and move it to oil.