This week we will be looking into stocks that has possibility of bouncing (CPG, SLI, PX), breaking resistance (RLC) and possible bearish reversal (LTG). Let me share what I see on each stock mentioned.
Trader’s Logbook PSE Stocks Worth Watching April 22 – 26, 2013
CENTURY PROPERTIES GROUP INC. (CPG)
Currently hovering just above the psychological support 2.0 and 38.2% Fibonacci Retracement level, this stock has the possibility to bounce. Based on movement last February of this year, we have seen that this stock pauses for a few days after it resumed to go up. Another instance was last March and that time traders were taking a very deep breath as it almost breach the 50% Fibonacci retracement level.
We also see a Gravestone Doji pattern which shows some bullishness after few drops. But is it enough? This type of pattern has a medium reliability so its not very strong. We need some convincing power from the bulls via large green candlestick or a gap up at the opening. Very interesting chart but be careful.
LT GROUP, INC. (LTG)
After successive rallies by LTG, it finally make a dip last Friday creating a familiar medium reliability Engulfing Pattern. We have seen possible reversal indicators on previous days but LTG ignored it all and continue to go up. Will the Engulfing pattern be different? Will the bears win this time and cause the price to correct looking for a support?
Engulfing Pattern is composed of two candlesticks where the last candlestick is a red one and engulfs a small green one. As the stock is characterized by an uptrend we see diminished buying reflected by the short, green real body. This then is followed by a strong sell-off, which lead to a close at or below the previous day’s open. Apparently the uptrend has lost momentum and the bears may be gaining strength.
Just in case this will fall, 1-year timeframe Fibonacci Retracement levels shows us that 20.0 or 23.6% Fibonacci retracement level is our support. As what we said Engulfing Pattern has a medium reliability. It needs confirmation via large red candlestick, a close below the previous price or a large gap down.
ROBINSONS LAND CORPORATION (RLC)
Is RLC going to continue its ascend very soon after the consolidation? RLC is currently forming a contracting wedge and the space for price action becomes narrower. This formation may lead to a break for the current formation. Since RLC is generally in an uptrend, there is a greater chance that it will break from the resistance. Notice that we also have a declining volume which could be considered quiet before the storm or the tightening consolidation before breakout occurs.
Although one should also be ready if it breaks from the support.
STA. LUCIA LAND, INC. (SLI)
What we saw last time with the Symmetrical Triangle on SLI still holds true. Almost breaking from the triangle last Friday but settled at 0.99 Although the 50% Fibonacci Retracement level seemed a challenge for SLI, the lower slope proves to be strong support as of this time. The area for the price movement is getting narrower as days passes. This should be interesting this week.
PHILEX MINING CORPORATION (PX)
PX went down last week by 7.46% Last Friday the price touched 16.0 but was able to regain a little bit of control. Currently, it is at the mercy of the 50% Fibonacci Retracement level which acts as our support. Interestingly we also notice that the price movement of PX since last March is creating a wedge with some points of interest like the BUY signal on RSI last March 21 which starts the bounce from the lower slope and continued to go up then went down last April 15. This time, another buy signal from RSI and price is at the lower slope. Such pattern may develop to be a falling wedge that may act as a continuation pattern.
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