Trader’s Logbook PSE Stock Picks Weekly – November 5 – 9, 2012
Most of us may still have a hangover from the long vacation but let’s get ready for tomorrow’s action. I would like to share analysis of some stocks. Feel free to comment or ask questions. Before you start reading thru our weekly stock picks, make sure to read thru the disclaimer at the bottom of this article. This is meant for educational / informational purposes only…
Trader’s Logbook PSE Stock Picks Weekly from November 5 to 9, 2012
PSE Stock Picks #1: MARC
MARCVENTURES is forming a falling wedge based on the weekly chart we got. Are we going to see MARC rise in the coming days? 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. Falling wedges slope down and have a bullish bias. However, this bullish bias cannot be realized until a resistance breakout. Will this news going to give some spark? Marcventures Holdings to raise P37.5M from issuance of warrants
Notice also that its price has been trading near the 76.4% Fibonacci retracement level. It has been in that area for 4 weeks now. Is it time to breakout or we need our price to touch the level before reversing?
PSE Stock Picks #2: DIZ
DIZON COPPER SILVER MINES, INC. JAP stock like DIZ is not doing well for the past few weeks already. Looking at the weekly chart, current trend is downward and forming a falling wedge. Price also touch the 76.4% Fibonacci Retracement level. Is this enough for a technical rebound for this week? Based on our explanation on MARC, falling wedge is a formation that have a bullish bias.
PSE Stock Picks #3: EDC
ENERGY DEVELOPMENT CORP. EDC’s rise last week looks like a breakout from the Ascending Triangle that has been formed for a few months now. Once we see a breakout, we usually expect price to test its new found support. So a temporary pullback will be seen on the price action. This may seen on Tuesday since looking at the daily chart, our last candlestick doesn’t give us a clue for a reversal. Maybe after tomorrow’s trading, a clearer candlestick with clearer signal will be seen. If you will notice during this week that the support will be a strong one, then expect this stock to move forward. Maybe the next stop will be at 7.0?
The Ascending Triangle is a bullish formation that usually forms during an uptrend as a continuation pattern. There are instances when ascending triangles form as reversal patterns at the end of a downtrend, but they are typically continuation patterns. Regardless of where they form, ascending triangles are bullish patterns that indicate accumulation.
PSE Stock Picks #4: VITA
VITARICH CORPORATION. I have seen Shooting Star a lot of times already on many stocks. Some of these instances confirm the reversal while at times bulls just ignore this signal. Either way, one should be vigilant on the price action of this stock for this week. What we know so far is that the price went up because of speculation that the “White Knight” is coming to rescue this company but until now we haven’t seen or no disclosure of who this investor will be.
Because of this, traders might be impatient of waiting and sell their positions. If this week we will end with a gap down or a large red candlestick, then it would be better to unload those shares.
PSE Stock Picks #5: BLOOM
BLOOMBERRY RESORTS CORPORATION. Two weeks in a row prior to last week, we see two dojis and last week we were waiting for bearish confirmation but instead price went up and ended with a green candlestick. I think it is now safer to get in for a ride but “never leave your things unattended”. The two dojis we found before might be a “relax mode” and now that it is finish, BLOOM may continue to rise and face the strong resistance at around 14.3 – 14.5
RSI has a buy signal on our weekly chart.
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.