JG Summit Holdings, Inc or JGS in the Philippine Stock Exchange could be on the verge of knocking out its [Read more...]
JG Summit Holdings (JGS) To Knock Out Its All-Time High!
Aboitiz Transport System (ATS) to Sail High?
On December 6, Aboitiz Equity Ventures or AEV in the Philippine Stock Exchange disclosed that it would push through with the sale of its transport unit, Aboitiz Transport System (ATS) to Negros Navigation Co. (Nenaco). Aboitiz Equity Ventures is selling 1,889,489,607 common shares, representing 77.24% of ATS’ outstanding common shares. The proceed of which will be used by AEV to finance new investments in power, food, and banking. As previously mentioned, the purchase price for 100% of ATS’s outstanding common shares is $105 million, approximately equivalent to $0.043 per share. This would then translate to PHP 1.8920 per share at PHP 44.00 per 1 USD. So presently, the shares of ATS is still trading at a 7.50% discount, assuming an exchange rate of PHP 44.00 to a dollar, given last Thursday’s close of PHP 1.7600 per share. [Read more...]
DMCI: Calm Before Another Bullish Storm?
Shareholders of the DMCI Holdings, Inc. or DMC in the Philippine Stock Exchange must have been partying all season long because of the unbelievable performance of the stock. Imagine, DMC only started trading at below PHP 10.00 in January 2010. And before you know it, DMC shares already reached a high of PHP 41.00 last November. Incredible! Anyway, after reaching the said high, DMC appears to have lost its upward momentum and has been trading flat ever since. Are shareholders just cashing their profits? Are we seeing a start of a downtrend? Or is DMC just gathering enough legs to propel itself to the sky once again? [Read more...]
Phoenix Petroleum to Follow Petron’s Footsteps?
The last two months has been very good for the oil stocks of the Philippine Stock Exchange, particularly Phoenix Petroleum and Petron Corporation. Petron has exploded from a low of about 6.80 in November 2010 to a high of 17.40 in today’s trading, forming a pennant pattern on its way. Anyway, that’s a gain of more than 250% in less than two months! Wow. Similarly, Phoenix has risen from 7.00 to a high of 13.80 during the same time frame. After reaching the said high, PNX, however, has consolidated into pennant or a symmetrical triangle pattern. The question now is, will PNX break out the same way that PCOR did? [Read more...]
Philex Mining (PX) Breaks Out!
The shares of Philex Mining, which is the largest gold producing company in the Philippines, or PX in the Philippine Stock Exchange have broken out from a either a rare inverted head and shoulders continuation pattern or a descending triangle. Either way, the recent breakout suggests a subsequent upside move for the stock. Looking at its daily chart, you can see that the volume of shares that was traded during the time of breakout has increased. The MACD likewise signal a bullish move with a bullish crossover (histogram just crossed above the zero line). Moreover, its RSI is already above 50 but below 80, suggesting that its upside move is gaining momentum. Yesterday’s (December 7) trading has also pushed it above all the three moving averages. Anyway, if buying continues to [Read more...]
DMCI: From Bearish to Bullish
A couple of days ago, the shares of DMCI or DMC in the Philippine Stock Exchange appeared to have broken down from a head and shoulders formation (please see my previous post here). More often than not, a break down from such pattern would place a lot of selling pressure on the stock. However, the breakdown gets invalidated when its price rose back above the formation’s neckline. I myself was caught in a “bear trap.” Now, DMC looks to have just broken out from a falling wedge pattern. Given this, I have to readjust my take on DMC from a bearish one to bullish. [Read more...]
Bearish Reversal Seen on DMC
DMCI Holdings, Inc. or DMC, which is one of the leading construction firms in the Philippines, has been one of the best stock performers since the start of 2009 (kindly click this to see my colleague’s analysis). During the [Read more...]
Goodbye PSEi!!!
Hiya, did I catch your attention? Well, looks like it’s a “Yes” but I’m just kidding with the title guys! Anyway, on the canvas is my technical analysis update on the Philippine Stock Exchange Index (^PSEi) which already dropped more than 10% of its value this month of November alone and could continue to do so. During yesterday’s trading session, the ^PSEi broke down from the 4,000.00 psychological level and like I mentioned on my previous post (kindly check this), if [Read more...]
Don’t You Just Love San Miguel!
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 [Read more...]
PSEi Finally Corrects!
Hi guys, the Philippine Stock Exchange Index (^PSEi) has finally corrected after an incredible run since September of this year. From around the 3,600.00 level, it rose all the way to an all-time high of 4,413.42 last November 5 (here’s my last post on it). However, seems like many traders have taken hefty profits after the remarkable run which caused the index to correct. At the same time, major indices from the global stock market such as the Dow Jones Industrial Average (^DJI) corrected as well. In less than 2 weeks, the PSEi nearly loss 10% of its value from the 4,413.42 all-time high to the current value of 4,069.31. Regardless, this is [Read more...]
Stocks Of Filinvest Land Preparing To Climb Again?
Hello guys, welcome to another day of trading! Here’s an update on the stocks of Filinvest Land Inc. (FLI as its ticker symbol) which is one of the leading residential property developers in the Philippines. I posted this stock pick of mine last September 14 when it had been going up after breaking out from the 1-year symmetrical triangle formation (kindly see that post in this link). The stocks have now been consolidating for more than a month after the run. As it moves sideways, there is a possible mini-triangle formation setting up on the chart. We could expect this 2-month triangle to be bullish as it’s coming from an uptrend. If FLI is indeed bullish and breaks out from the triangle, it could head up but would encounter some selling pressure at the 1.50 peso resistance. In case that gets breached, the next resistance it could aim for is 1.68 pesos. On the other hand, if the stocks breakdown from the pattern which is more unlikely to happen, the immediate support could be 1.31 pesos. If that marker fails to hold the price from further dropping, the next support could be the 19-month uptrend. Regardless, like I always say, as long as the uptrend remains intact, I’d stay bullish on this overall. Have a great day!
DMC Stocks Up 1,950% In 2 Years!
Hi everyone, that’s right! The title states it clearly! Before, I mentioned the stocks of JG Summit Holdings gaining 1,600% in less than 2 years from 1.58 pesos to an all-time high of 27.00 pesos (kindly see this link) and that was remarkable but what’s awesome are the stocks of DMCI Holdings, Inc. For those who do not know, this company operates four subsidiaries each one engaging in a different business such as general construction services, mining, investments and power generation. They are involved in both private and government projects. Anyway, DMC (its stock symbol in the Philippine Stock Exchange) was valued at 1.86 pesos back in October 28, 2008 and since then, it had gained 1,951% when it reached an all-time high of 36.30 pesos during the last trading session. However, it closed at 35.95 pesos which makes it a 1,932% increase to be exact. I remember posting about DMC when it was duck diving during the 2008 financial crisis (kindly check this link) but as we can see now, it had made a huge turnaround.
The stocks of DMCI Holdings, Inc. started its bull run on November of 2008 when some analysts said the bear market was about to reverse. From then on, the DMC stocks just kept on continuing to climb until now. However, in my technical analysis, the last daily candle formed on its stock chart could be bearish as it gapped up during the opening of the trading session and closed weak. In case the stocks drop, a significant support could be the 2-month uptrend. If that trend breaks and the stocks further decline, the next support could be 32.70 pesos. If the 32.70 peso marker still doesn’t hold on, the next support could be the 9-month uptrend. Personally, I think a minor correction would be healthy for the stocks before the ascend continues. However, if the bulls are too strong, the stocks will just keep on rising but could encounter some selling pressure at the 36.30 peso all-time high. If that price mark gets cleared out, the next level to be looked at is the 40 peso psychological resistance. Above all, as long as the uptrend remains intact, I’d stay bullish on this.
Oriental Peninsula Resources Group To Make Another Move?
Hello traders! My Philippine stock pick for the week is Oriental Peninsula Resources Group, Inc. or ORE as listed in the Philippine Stock Exchange. Oriental Peninsula is a Philippines-based holding company which is involved in mining activities. By the way, I had a post on this last May when the price was still around the 2-peso area (here’s the link). Anyway, in my technical analysis, there is currently a small symmetrical triangle forming in the ORE stock chart. However, I’m not sure if the formation is already set for a move since the pattern still looks premature and we will only find out if the breakout/breakdown occurs. Symmetrical triangles are generally neutral in terms of which direction it would head. However, as the triangle we see in ORE is coming from a 7-month uptrend, the pattern is most likely bullish and the stocks could breakout. If a break above the triangle’s resistance takes place, the next marker could be 3.35 pesos. If 3.35 pesos gets taken out once again, there could be some selling pressure at the next resistance at the 3.40 peso all-time high dating back from December of 2007. Then after that could be the 4.00 peso psychological level. On the downside, if the the symmetrical triangle breaks down, the immediate support could be the 8-month uptrend. If the stocks slip and drop below the uptrend, the next support could be the 3.00 peso price mark. Above all, as long as the uptrend remains intact, I’d stay bullish on this.
JGS Stocks Gained 1600% In Less Than 2 Years!
Hello, that’s right guys. The title speaks for itself! The stocks of JG Summit Holdings, Inc. or JGS as listed in the Philippine Stock Exchange shot up more than 1600% in less than 2 years. By the way, for those who do not know, this company is involved in air transportation, banking, food manufacturing, hotels, petrochemicals, power generation, publishing, real estate and property development, and telecommunications. It’s owner, John Gokongwei, is one of the biggest ballers in South East Asia.
The JGS stocks started its bull run on December of 2008, when according to some analysts, the bear market was about to end. In fact, they were right because 3 months after, stocks globally started to reverse and went up. From 1.58 pesos, JGS climbed all the way to an all-time high of 27.00 pesos last week. This is definitely an awesome run for a blue chip! If it continues to ascend further, it needs to move pass above it’s all-time high where there could be some heavy selling pressure before it makes another move up. In case it clears out 27.00 pesos, the next resistance could be the 30.00 peso psychological level. On the flip side, the immediate support could be 24.75 pesos. It the stocks further drop below that area, the next support could be the 6-month uptrend. Above all, the stocks could still be headed northbound as long as the trend remains intact.
PSEi Still on a High!
Hallo stock traders! It’s been more than a week since the main index of the Philippine Stock Exchange (PSEi) has passed above its all-time high of 3,896.74 and if you want to check my post on that last September 9 , kindly click here. Looking at its chart now, we can see it has moved pass above the 4,000.00 psychological resistance when it still hasn’t last week. It was also able to make a new all-time high of 4,125.50 when it hit the 2-year ascending channel’s resistance during the previous trading session. If the PSEi decides to further ascend, the immediate resistance could be the 4,125.50 all-time high. If that price mark gets cleared out, the next could be the 2-year ascending channel’s resistance. On the downside, in case the index follows a correction, the immediate support could be the 4,000.00 psychological level. If it further drops below that marker, the next support could be 3,896.74.
A few hours ago, the data on the U.S. housing starts surged a better-than-expected 10.5% in August to a seasonally adjusted annual rate of 598,000. This could continue to boost traders confidence and add optimism on the global markets.
Phoenix Petroleum Technical Analysis Update
Hello everyone! Another week of trading lies ahead. What I have here is my technical analysis update on Phoenix Petroleum or PNX in the Philippine Stock Exchange. As you can see last August 26, when I posted about this, the stocks have just bounced off the 8-peso resistance after breaking out from the triangle formation (kindly check here). More than a month after, not only has the 8-peso marker been breached but the stocks have also moved passed above the 8.70-peso resistance. By the way, I had a post on this right when it broke out from the triangle formation last July 25 (you may see it here). So for the awesome readers who were convinced by my analysis and considered buying PNX stocks at that point, you’ve already gained more than 20% and that’s definitely not bad at all! Anyway, here are my technical updates on the Phoenix Petroleum stock chart: The stocks could further push upward and continue to run with the bulls, however, there could be some selling pressure at the 10-peso psychological level which for me is also a good resistance area. If it successfully breaches above that level, the next resistance could be 11 pesos. On the downside, the former 8.70 resistance could now act as the current support. If the stocks further drop below that price mark, the next support could be 8 pesos.
FLI High!
Hello to the followers of Filinvest Land Inc.! As you can see, the stocks of this company have been making a good run since August and is making new highs for the 2-year time frame. Two months ago, it was still at 1 peso. Now, it’s at 1.44 pesos exceeding the 1.33 peso resistance which also is my target price as I mentioned on my last post (kindly click here). We have here a nice example of a classic triangle pattern that broke out and reached it’s target price by getting the size of the triangle’s base added to the breakout point. However, the pattern I’m seeing could be different for others. Well in fact, looking at the 2.5-year time-frame, you could actually see a reversal cup and handle formation. Anyway, I also posted on this when it was just about to break out from the triangle pattern (kindly click here) and been monitoring it since then. For the lucky ones who were able to buy at 1 peso, an easy 40% for you guys in less than 2 months. Definitely not bad!
So what’s next for the Filinvest stocks? In my technical perspective, the stocks could consolidate around the 1.44 peso resistance area before it makes another move but this isn’t really necessary. If it decides to ascend right away, it could encounter some selling pressure at the next resistance at 1.68 pesos. On the other hand, if the stock price declines, the immediate support could be 1.33 pesos. If it drops further below that marker, the next support could be 1.14 pesos.
The Ayala Corporation Run
Good morning guys! Here’s an update on my post about the Ayala Corporation breakout. Like what I mentioned last September 3 (kindly check this link), after the Ayala stocks (AC as listed in the Philippine Stock Exchange) shot up from the triangle formation, the next resistance they could encounter is the 400 peso psychological area and it was tapped. They just ran up unexpectedly. In my opinion, the stocks could consolidate for a bit first before trying to move past above the current resistance but if the bulls are really on the run, the 400-peso psychological marker could be taken out easily. If the 400 pesos gets cleared out, the next resistance that could be aimed for is 422.50 pesos. Then after that is 457.50 pesos. On the downside, the immediate support could be 382.50 pesos. If the AC stocks drop further below that price mark, the next support could be the 355.00-357.50 peso level. Then the next could be the 7-month uptrend.
I also mentioned last September 3 that the Philippine stock market will most likely be in the bullish territory the week ahead (this was last week) and it was. Most of the stocks that joined the band wagon were blue chips such as Megaworld, the Ayala-owned companies, the Aboitiz-owned companies and Banco de Oro and this propelled the Philippine Stock Exchange Index to reach new highs (kindly see the post here) during the last trading session.
Hello PSEi All-time High!!!
Hello beautiful people! Let’s get back the to the chart of the Philippine Stock Exchange Index (PSEi). The last time I posted on this was last month (kindly see it here) and back then, the ascending channel was still intact (indicated by the yellow parallel lines). Two weeks ago however, the index cleared out the ascending channel’s resistance and surged higher. Then, in just six trading days, it moved past above the 3667.74, 3770.18 and the 3896.74 resistances. I actually just noticed now the PSEi has already doubled its value in less than two years after coming from the bear market. Also, a few minutes ago, the US reported a decline in unemployment claims, from 472k previously to 451k now which brings the US market sentiments towards the positive side. This could be good for the global economy including the Philippine Stock Exchange as the US economy is still a benchmark for the global market.
Technically speaking, what is ahead of the Philippine Stock Exchange Index? Like I mentioned earlier, the PSEi has breached the 3,896.74 resistance (this would still be the all-time high if not for today’s bullish session) and could head higher as there are no more resistances left. However, there could still be some selling pressure at the 4,000.00 psychological level which I personally consider a resistance. If that gets taken out, the PSEi could just shoot all the way up again until it finds some resistance around 4,100. In my opinion, the break above the 3,896.74 resistance isn’t convincing as there is no significant surge in the volume. The index could slightly decline before it heads back on track but who knows right. There are many cases on breakouts without much volume but still went all the way up. Aside from that, the volume is just a secondary indicator next to the price action (price is still king). Anyway, on the pessimist’s point of view, if the index suddenly drops, the former resistances could act as supports. If not, the 18-month uptrend could be the strongest support among them all and like I always mention, as long as the uptrend remains intact, the northbound direction of this index will most likely continue. Enjoy the long weekend guys, let’s see what happens on Monday. Cheers!
The Ayala Corporation Breakout! – September 3, 2010
Hello stock traders! It’s been a while since I last posted on Ayala Corporation or AC in the Philippine Stock Exchange. If you want to check my post three months ago, kindly check here. As you could see, it took 5 months for the Ayala Corporation stocks to setup the triangle formation that could trigger the break above the 355.00-357.50 peso 2-year resistance area. Fortunately, it did on September 2 which is just yesterday (indicated by the yellow circle). Right now, the Ayala stocks could further head up but could encounter some selling pressure at the 400.00 peso psychological area which I also consider a resistance. However, if the stocks move past above the 400.00 peso marker, the next resistance could be 422.50 pesos. On the downside, in case the stocks start to drop, it could bounce off the 355.00-357.50 peso resistance-turned-support. If it slips and slides below that area, the next support could be the 7-month uptrend.
Yesterday, the US reported a great news on their Pending Home Sales data as it turned out to be positive. Currently, they also reported a stability on the unemployment rate which triggered the Dow Jones Industrial Average and the other major indices to stay on the bullish territory, well at least for now. Since the US market’s with the bulls right now, the Philippine market will most likely be as well on the coming Monday trading session. Good news for the blues! Happy weekend guys, cheers!
