Last week’s choice was GTCAP(1.85%), BEL(0.96%), BLOOM(2.76%), SMPH(2.78%) and SGI(0.43%) with just a very little gain. Some of which are testing its newly found support. This week we will be picking new stocks while still retaining BLOOM and SGI. The new stocks will be MER, LTG and PXP
Trader’s Logbook PSE Stocks Worth Watching February 11 – 15, 2013
BLOOMBERRY RESORTS CORPORATION (BLOOM)
BLOOM is currently on a sideways move after it rallied for 5.52% last February 1. We notice that the resistance zone is quite wide and price may have a challenge in breaking this zone. Nonetheless I think BLOOM has a bullish bias but just be careful as price is hovering just a few notches from the support line at around 13.8 while the next support zone is around 13.0
MANILA ELECTRIC COMPANY (MER)
As we see a lot of stocks have already lift off far from the ground – breaking resistance level, we thought of those as with bigger risk of falling or at least finding a new support line below its current price compared to MER which has just broken from the strong resistance. Now the 300 level is its support zone and while 288 – 290 is still its strong and established support, the new support may soon mature and will become the ground for lift off. For long term hold, monitor this zone for a possible entry.
LT GROUP, INC. (LTG)
We took notice of LTG few weeks ago and during that time it is constructing what we thought to be an Ascending Triangle. The last two trading days of LTG, it gave a good impression as it break from the resistance. Looks like the momentum is still there because the volume last Friday bigger than the previous day. Looks like another one or two days before it will correct? For holders, just ride the momentum until it subsides. RSI at a warning level.
PHILEX PETROLEUM CORPORATION (PXP)
The definition of Ascending Triangle doesn’t really fit on the current formation made by PXP but it is worth noting that for the past few days, price has been creating higher lows. If you notice there is a certain level that the buyers cannot seem to exceed (looks like around 34). However, buyers they are gradually starting to push the price up as evident by the higher lows.
SOLID GROUP, INC. (SGI)
Looks like the cup and handle that we thought SGI is creating will be a frying pan and handle. As the construction of the handle looks like a rectangle formation instead of a curve. Still this type of formation has a bullish bias. This usually appears during an uptrend as a “pause” before it will continue to rise.
Currently our price is at the mercy of its support line. This is a good chance to enter IF price will move up and break the resistance soon. But if this is the end of the road, then get out quickly as next support might be the next target of the bears which is around 2.17
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