Trader’s Logbook PSE Stock Picks Weekly from November 12 to 16, 2012
I couldn’t see any stock that have a very strong bullish reversal indicator after last week’s trading. Most of them I see either sideways or with bearish bias. If there will be stocks that will shine this week, it will be due to news or technical rebound from the sideways movement. A KICKING PATTERN don’t need a prior market direction. (Before reading on, make sure to read our disclaimer at the bottom of this post).
So we will just pick some stocks that has been a favorite from previous days/weeks.
Trader’s Logbook PSE Stock Picks Weekly (November 12 – 16, 2012)
PSE Stock Picks #1: VITA
VITA‘s week wasn’t a good one. As what we have feared, VITA gave us a confirmation of the previous week’s bearish signal, the Shooting Star. On our weekly chart we can see a red candlestick signifying that it is now reversing to bearish trend. On this week we might see some spikes you may use as fire exit. Even with the White Knight rumor, I think this will still be generally going south as traders have already been tired of waiting. A revival of the rumor may push the price to increase but while its only a rumor, selling pressure will be felt selling pressure will be felt especially those traders who were stuck at high price will be selling their position.
PSE Stock Picks #2: APM
Last 3 days of the previous week we saw a possible reversal when Engulfing pattern was seen last Wednesday and Thursday but last Friday, price wasn’t able to surge and it seems it hit a wall at around 0.128
Looking at weekly chart, we have a candlestick with a very long lower shadow but we can not get a general trend. If the price will not gap up on Monday, maybe this will go sideways for a while with a bias going south.
RSI on weekly chart still above 70 but I think it is beginning to loosen up
PSE Stock Picks #3: DIZ
We have noticed DIZ last week to go up on the early minutes after the opening but never rally until the closing. Additionally, there were only a few trades for DIZ since last week of October and from that week tell last week, it has been cruising at 76.4% Fibonacci Retracement level. I have monitored this stock since last week for a possible technical rebound but didn’t happen. Interestingly we could see on our weekly chart a Falling Wedge formation. Is this near to reversal? A breakout from this wedge with a big volume could mean a whole new chapter for DIZ.
The Falling Wedge is a bullish pattern that begins wide at the top and contracts as prices move lower. This price action forms a cone that slopes down as the reaction highs and reaction lows converge. This formation has a bullish bias but can’t be realized until a resistance breakout.
PSE Stock Picks #4: LPZ
Last Thursday’s Bearish Harami Cross on LPZ wasn’t confirmed. It rallied as high as 6.15 and close at its highest. It hits the 52 week high. Our weekly chart shows us that LPZ has broke out from the resistance (now its support) with impressive volume and a buy signal on MACD. Although RSI is above 70, I think there is still room for it to climb. A usual ‘test of newly found support’ may be felt soon.
PSE Stock Picks #5: MEG
MEG‘s weekly chart seems to suggest a bearish bias as we see a rising wedge. As our wedge contracts as seen on our resistance and support line and our last price action tells us that its on the resistance side and may send price down if this wall proves to be strong.
The Rising Wedge is a bearish pattern that begins wide at the bottom and contracts as prices move higher and the trading range narrows. In contrast to symmetrical triangles, which have no definitive slope and no bullish or bearish bias, rising wedges definitely slope up and have a bearish bias.
PSE Stock Picks #6: MARC
MARC didn’t move where we want it to be but at least its action is still within our range from last week. Price is still within our falling wedge and if we look at our weekly chart Fibonacci Retracement at two-year time frame we could see a 76.4% Fibonacci Retracement level support at the current price. Is this a strong support or it will easily be broken? The news last week create a very small gap up last Monday but trades were very thin until the end of the week. We didn’t experience a sell on news. This week will be crucial especially on what will happen at the support level.
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