This week we will be looking at ALI, PGOLD, SM, SMPH, BDO and MBT. Last week these stocks gave us a good gain except for SMPH but looking at its weekly chart, this might be the leader among the 5 stocks mentioned.
Trader’s Logbook Philippines Stock Market Stocks Worth Watching December 2 – 6, 2013
Check our technical analysis on each stock below.
AYALA LAND, INC. (ALI)
Weekly: ALI is showing a neutral bullish signal on it weekly chart via Tenkan Sen / Kijun Sen Cross. This is called neutral because the cross happened inside the Kumo. This is the only Ichimoku element that is turning into bullish while we still waiting for confirmations from other elements.
There is also an interesting pattern from candlesticks called Bullish Piercing Line which suggests reversal. If price will rebound from here then we will see this point as our higher low which may help build the Ascending Triangle we are trying to project at this time. Be warned that its not yet happening and the formation may be changed as time goes by.
Bullish Piercing Line: The market moves in a downtrend. The first red body reinforces this view. The next day the market opens lower via a gap, showing that the bearishness still persists. After this very bearish open, bulls decide to take the lead. The market surges toward the close, prices start to go up resulting in a close way above the previous day’s close.
Daily: On its daily chart, it is seen that the price continue to move up since the last time we saw the Doji. Last Thursday it shows a neutral bullish signal via Tenkan Sen / Kijun Sen Cross and price continue to move up after that but still Chikou Span does not agree with the bullishness showed by this progress. Bulls need to do more than what they are currently moving. Maybe they need to push it to 31?
RSI or Relative Strength Index is still very much healthy indicating more room for buyers to buy more shares.
PUREGOLD PRICE CLUB, INC. (PGOLD)
Weekly: The Kijun Sen Line continue to support the price of PGOLD from going down since last 2 weeks ago. This recently concluded week we see a bullish candlestick pattern called Harami. This pattern suggests that while the bears are pushing the price down for few weeks now, the bulls have finally stopped them and price may reverse if bulls continue to hold ground.
Ichimoku system is telling us that PGOLD is still in an uptrend on weekly time frame. As long as sentiment will not change, hold on to your shares.
Daily: Price of PGOLD met a strong headwind last Friday as it retreat after hitting the Kijun Sen which could be a good bullish signal. As it retreat it finds support on the Tenkan Sen line. Kumo’s lower part may also give support in case the not-so-reliable Tenkan Sen can’t hold the pressure. As long as these support will be able to hold, we will see PGOLD’s daily and weekly signal insync.
SM INVESTMENTS CORPORATION (SM)
Weekly: A bullish signal emerges after the week’s price movement. We are currently looking at a Bullish Piercing Line (although closing is a bit short). This pattern suggests that bulls are able to stop the bears from pulling further down. The Neutral Bullish Signal brought by Tenkan Sen / Kijun Sen cross few weeks ago is still intact. We are just waiting for additional bullish signal that may happen soon. We have also observed that the price movement may develop a Symmetrical Triangle but it is still a bit too early to tell at this time. But is something to look forward to.
Daily: The daily chart is still not showing bullish signal based on Ichimoku system. But what we notice is that the Kijun Sen line is now moving in a horizontal line. This line most of the time attracts price to come near to it. Let’s monitor this development this week.
SM PRIME HOLDINGS, INC. (SMPH)
Weekly: Looks like SMPH is following an upward channel with the dip this week considered as another higher low. Will it bounce from here and reach the resistance level (upper slope)? Note also that the candlestick created is identical to the candlestick on the previous higher low. The cross of Tenkan Sen / Kijun Sen gives additional bullish sentiment although it is a bit weak as it happen inside the Kumo. It is called Neutral Bullish Signal.
Daily: No Ichimoku element is showing any bullish signal as of this time and none from the japanese candlestick as well. For those who want to have a fresh entry, it would be best to wait for some signals.
RSI or Relative Strength Index is coming from the oversold level and is now pointing upwards.
BDO UNIBANK, INC. (BDO)
Weekly: This week we have a good rally from BDO which gives us 5.4% to close the week. The price movement shows a large green candlestick beside the previous large red one. This formation is in preparation for a 3-candlestick bullish reversal pattern called the Bullish Squeeze Alert, but until that pattern is not there, we still have some doubts whether BDO will continue to rise or not.
Based on Ichimoku system, BDO’s weekly chart is still in a downward trend.
Daily: Daily chart is showing us that price is within the Kumo or cloud and may have meet a headwind especially that price is near the 61.8% Fibonacci Retracement level. The 2-day consecutive rally of BDO made it possible to cross the Kijun Sen line from below. It is a bullish signal but considered neutral because it happened inside the cloud. Nonetheless this should enable us to put this stock in our watchlist.
METROPOLITAN BANK & TRUST COM. (MBT)
Weekly: MBT’s weekly chart is showing some bullish signal via candlestick pattern called Bullish Piercing Line. This pattern suggests that the bears are losing their confidence while bulls are getting stronger. But this bullishness is not yet seen in our Ichimoku system as all elements are still in red. Test buy is ok at this time. Add when there is/are bullish sign from Ichimoku.
Daily: Our daily chart tells us that MBT was able to bounce from the support and has made a cross on Tenkan Sen line. But this is a very weak signal so we will not rely on that. RIS or Relative Strength Index is still pointing up and not yet overbought. Based on Fibonacci Retracement level, our resistance is at 82.70 which also coincides with the Kijun Sen line. A little gap somewhere very near 80
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