Trader’s Logbook PSE Stocks Worth Watching February 4 – 8, 2013
Last week, because the general sentiment of the market is very bullish, we have gained a good percentage and I think it was an easy pick. This time, we are a bit cautious and thinking our market may correct anytime soon. It is very important to monitor the stocks that we have and not just buy and forget. This week we are going to monitor 5 stocks: GTCAP, BEL, BLOOM, SMPH and SGI
Trader’s Logbook PSE Stocks Worth Watching Feb 4 – 8, 2013. GTCAP, BEL, BLOOM, SMPH & SGI
GT CAPITAL HOLDINGS, INC. (GTCAP)
Looks like a breakout from the Ascending Triangle for GTCAP as it advanced last Friday by 2.25% Currently at the all time high. Price may have broken out from the continuation pattern but there might be a test of support before it will surge to a new level. Be careful with the headwind but looks like GTCAP mean business after the break. If support around 694 will hold then this should continue to go up.
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.
BELLE CORPORATION (BEL)
Last Jan 22 we were looking at BEL‘s chart and see that it is forming a Symmetrical Triangle. During that time we asked if it will break but it didn’t happen until last Friday when it rallied. But it seems BEL is facing yet another resistance. Does BEL still have the strength to push its price up or it will have to rest while gain strength? Usually after the breakout from the triangle, it will test its newly found support. If you are holding BEL now, HOLD your position. Trend mode is still upward.
The symmetrical triangle is considered to be a continuation pattern that tells us consolidation in a trend is going on before it will be followed by a resumption of the prior trend. It is formed by the convergence of a descending resistance line and an ascending support line.
BLOOMBERRY RESORTS CORPORATION (BLOOM)
The White Opening Marubozu candlestick that appeared last Friday suggests that bulls have been awaken from a deep sleep for few weeks. Price was moving sideways this White Opening Marubozu could be a signal for a change of trend. This type of pattern when could mean a bearish reversal pattern if price was in a downtrend, otherwise it could be interpreted as a start of a bull run. Although I look at it as a bullish pattern at this stage, because it has a low reliability, we need to see the next candlestick to have a better judgement about the state of the trend.
We can also see that we have a thicker area of resistance trying to stop the bulls from moving forward at around 14 – 14.44 If bulls will be able to break that resistance, 15 should be just an easy task.
SM PRIME HOLDINGS, INC. (SMPH)
After testing the support and our jet almost crashed, it seems we are not in a clearer sky at a new altitude. SMPH reached an all time high of 18.16 intraday and settled just few notches below. With its aggressive plan of expansion here and in China this should add more value to its fundamentals and this will fuel our jet to soar new highs. Is 21 just around the corner? Although price is already away from 17, I think 17 will still be its support until it can build a new one above it.
SOLID GROUP, INC. (SGI)
SGI has been constructing what looks like a Cup and Handle. Will it be finished before we can pour our gains to the cup? Or the handle will be soft and broke easily? We can also see a long legged doji as our last candlestick similar to what we saw last Jan 24. If the pattern of the previous long legged doji will be replicated, then we might see a rectangle formation in the making which will lead to the failure of C&H but still with bullish sentiment as rectangle formation is a continuation pattern. Generally we have an upward trend.
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