Last week we are all red with PSEi closing at 6084.84 breaking the 6100 level. This week we might see a continuation of bearish sentiment thus our stock picks for this week serves as a warning for those who are planning to get in or this may also help those who are already ipit and may look for exit points. These stocks are BEL, BLOOM, CPG, DNL and SM.
Trader’s Logbook Philippines Stock Market Stocks Worth Watching November 25 – 29, 2013
Check our technical analysis of each stock below.
BELLE CORPORATION (BEL)
Weekly: BEL’s weekly chart doesn’t look good as bearish sentiment quite strong. Based on japanese candlestick, the previous week we have a Dark Cloud Cover pattern in which bearish bias is confirmed via a long red candlestick. Ichimoku system is also showing bearish sentiment as price on weekly chart is currently below the Kumo or cloud, not to mention Kijun Sen is moving above the Tenkan Sen. Lastly, Chikou Span is still moving below its corresponding price. I think support at 5.0 is very crucial. This week it wasn’t broken but with bearish bias still in the air, this might be tested again. In case this will be broken, our next support will be around 4.50
RSI or Relative Strength Index on weekly chart is still pointing down.
Daily: We don’t disregard the fact that there might be a spike on BEL but may not be enough to lead to a reversal for now. If we look at the daily chart, the Tenkan Sen and Kijun Sen is now touching its other. If this will make a weak bearish signal then this will add up to the bearish signal that Chikou Span is already showing.
BLOOMBERRY RESORTS CORPORATION (BLOOM)
Weekly: The weak bullish signal we saw on previous weeks has gone as bears was able to control the battlefield. The Tenkan Sen / Kijun Sen Cross this week signaled a strong bearish sentiment. This is considered strong because the cross happened below the Kumo or cloud. The 9.5 level may act as immediate support on our weekly chart but I think 9.0 is a much stronger support.
Daily: A technical bounce may happen based on the japanese candlestick (hammer + long green candlestick) but bulls may not stay for long unless it will rally up to 10.50 or above.
RSI or Relative Strength Index might be pointing up suggesting a buying activity is still going to happen but this might be overwhelmed by the sellers who wants to get out of BLOOM. I think any spike is an opportunity to lighten or get out.
CENTURY PROPERTIES GROUP INC. (CPG)
Weekly: CPG fell by 15% this week and while we still see the weak bullish signal via the Tenkan Sen / Kijun Sen Cross, Chikou Span continue to disagree with the sentiment thus making the already weak bullish signal weaker. We have seen that 1.55 is an interesting level for CPG so we need to monitor this level. If price will continue to drop from here then most probably we will have a strong bearish signal that will come out. Notice also how the Kumo or cloud succeeded in preventing the price from going up.
Daily: The Doji Star we saw last Thursday (CPG is still alive. Doji Star may signal a reversal) which we speculated to bring us a reversal did not happen and instead it brough us another red candlestick. Price is now at the mercy of its support zone which is the Kumo. Notice that Chikou Span is now agreeing with the bearish bias shown by the weak bearish signal from Tenkan Sen / Kijun Sen Cross. Chikou Span may change its sentiment if price will close above 1.60 and continue to rise to 1.7 level. Remember that Chikou Span reflects the previous 26 periods. If 26 periods ago the price is above the current price, it means we have a bearish signal. If price today is higher than the price 26 periods ago then we have a bullish signal.
RSI or Relative Strength Index remains flat and is at oversold level.
D&L INDUSTRIES, INC. (DNL)
Weekly: DNL continue to be bearish. Based on Ichimoku system, DNL added a new bearish signal by way of a Kumo breakout. See our weekly chart how the price pierced through the Kumo from above. This is now our immediate resistance. RSI is pointing down and may continue to drop as holders will sell their shares. Will this hit below 6.0 again?
Daily: Daily chart has been bearish since the time Chikou Span, Tenkan Sen / Kijun Sen Cross and Kumo all showed bearish signals. Kumo or cloud will act as our immediate resistance which is around 6.50 For those who are waiting for the fire exit, it seems that we do not have one as of this time.
SM INVESTMENTS CORPORATION (SM)
Weekly: SM is giving us another bearish signal from the Kumo breakout. This bearish signal is an addition to the Chikou Span bearish signal. Tenkan Sen at this time is moving above Kijun Sen but looks like it is also about to join the party. Price also break the 61.8% Fibonacci Retracement level which should have been the support aside from the Kumo. RSI is still pointing down.
Daily: Daily chart is already in a bearish mood with all Ichimoku elements in red. RSI is pointing up on daily chart which may suggest that there will be buying pressure but this might just be a fire exit. The kumo will be our immediate resistance. For those ipits, I think it would be better to sell on strength at this time.
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