For the past 10-months, the Philippine Stock Exchange Property Index (PPROP) has been moving sideways. This index by the way is consisted of 15 property stocks (www.pse.com.ph/html/MarketInformation/indexcomposition.jsp?sector=PRO) and Ayala Land, Inc (ALI) is the most influential with its 36.19% weight on it. Next comes SM Prime Holdings Inc (SMPH) with 17.58% a weight. Anyway, in the process, this index could be making an ascending triangle chart pattern and a breakout could be imminent given that the indicators are pointing up such as the MACD hovering above the 0 line and the price recently crossed above the 50, 100 and 200-day moving averages. Also, triangles usually break out before it reaches the apex. In case this does, the move up could bring its value all the way to the 1,906.46 resistance. On the breakdown side which is less likely to happen, the immediate support could be the mini ascending channel. Furthermore, the downside target of the triangle is 1,300.00.
Try to watch out at for the property stocks! They could break out soon. I’ll post on some picks tomorrow.