Last week was an exciting week for traders as basuras float like water lilies. While PSEi is sleeping, or at least moving in a “normal pace” this is the time for basuras to shine. But be careful they still doesn’t smell good if you’re stuck!
This week we are picking 5 stocks to monitor. It doesn’t mean they will fly high this Monday but poses an opportunity for us to get in and get some gains. MER for instance, looks like will dip. The dip should be an opportunity for us to enter at a good price. LC on the other hand has a bearish signal but if not confirmed then it will continue to go up. This is also true with PX and PNX. But with regards to MPI, we may consider not to get this stock for now.
Check our analysis below for your guide. Of course it is all up to you to buy/sell your position.
Trader’s Logbook Philippines Stock Market Stocks Worth Watching July 8 – 12, 2013
MANILA ELECTRIC COMPANY (MER)
MER seemed to have run out of steam after reaching the 38.2% Fibonacci Retracement level. Resistance at this level is currently strong which may bring the price back to around 300 just like what happened last June 25. With the HOLD rating from COL make some investor to panic and lighten or pull out their position?
Looking at the weekly chart, we could see a Hammer candlestick 2 weeks ago but it wasn’t confirmed last week. It would be a opportunity to buy once MER will hit the support line. As of now, let us just wait and see the action.
LEPANTO CONSOLIDATED MINING A (LC)
LC surprised traders when it closed by 22.92% last Thursday but made other traders disappointed when it failed to continue on Friday and took the gains from their hand. Those who entered earlier were spared but their gains were lessen.
Based on our daily chart, the last two candlesticks formed a Dark Cloud Cover although if you notice the red candlestick doesn’t penetrate more than half of the green candlestick. Does this mean this top reversal pattern may not really lead to a dip? I think the dip last Friday was partly because traders need to stay away from LC during the weekend that is why they are selling but at the same time some traders want LC to stay afloat. If price will continue to move up on Friday, maybe it will reach the 0.65 soon but if we will see a panic selling by Monday then its time to say stay away from the roller coaster ride for now.
Mid and long term outlook for LC is not yet good at this time so be sure not to be in ipit mode.
METRO PACIFIC INVESTMENTS CORP (MPI)
MPI doesn’t look good at the moment. The 20-day SMA has crossed the 100-day SMA few weeks ago and is now stopping the price to go up. At the same time the 200-day SMA line is holding the price not to go down. Who will win? I think at the moment MPI will go sideways with bearish bias. If we look at the weekly chart, we could see that the Hammer 2 weeks ago wasn’t convincingly confirmed last week as it only move up by 1.21%
PHOENIX PETROLEUM PHILIPPINES (PNX)
PNX have rebounded for the past few days after it sank below 5.00 last June 25 but with small volume. Last Friday it gaps up at the opening but close in red with 2.40% decline from previous price. Based on the candlesticks we see a bearish sentiment by way of the Engulfing Pattern. This is not a strong reversal pattern so it needs confirmation by a gap down and long red candlestick. In case that will not happen then price may continue to go up slowly. Mid to long term is still not good.
At the moment the 20-day SMA line and 6.00 will be our resistances.
PHILEX MINING CORPORATION (PX)
Checking the weekly performance of PX, it went up last week by a total of 18.39% following the previous week’s Long Legged Doji (refer to weekly chart). Looks like a confirmed reversal?
On daily chart, we have a weak reversal pattern via a Doji Star. Which one will come out strong? Bears or the Bulls? Interesting PX!
DISCLAIMER: THE MATERIAL CONTAINED IN THIS ARTICLE IS FOR EDUCATIONAL PURPOSES ONLY. UNDER NO CIRCUMSTANCES IS IT TO BE CONSIDERED AS AN OFFER TO SELL OR A SOLICITATION TO BUY ANY SECURITY. WE DO NOT REPRESENT THAT IT IS ACCURATE OR COMPLETE AND IT SHOULD NOT BE RELIED UPON AS SUCH. WE SHALL NOT BE RESPONSIBLE FOR AMENDING, CORRECTING OR UPDATING ANY INFORMATION OR OPINION CONTAINED HEREIN