This week we have another set of stocks we will be watching. One of which is PNB where we have a news about its merger with Allied Bank. Another favorite stock of the crowd is EW which rallied and corrected. Added to the list of stocks worth monitoring are ELI, EG and JGS
Trader’s Logbook PSE Stocks Worth Watching January 21 – 25, 2013
PHILIPPINE NATIONAL BANK (PNB)
With the news about PNB and Allied Bank merger closer to completion, the price of PNB has been in a contracting wedge. Are we going to see a breakout soon? Or a breakdown?
The symmetrical triangle usually forms during a trend as a continuation pattern. The pattern contains at least two lower highs and two higher lows. When these points are connected, the lines converge as they are extended and the symmetrical triangle takes shape. You could also think of it as a contracting wedge, wide at the beginning and narrowing over time.
When merging completes, will the price of PNB already includes the value of the merger or not?
EAST WEST BANKING CORPORATION (EW)
After the all-time high early this month and days of correction, it seems that EW is ready to start flying again. When we saw the Hammer last few days ago at 23.6% Fibonacci Retracement level, we thought that was the time we are waiting for but instead it rests on that level for a few days now. Last candlestick on our daily chart shows the tag of war between bulls and bears. We see that at some point bulls where able to gain control but then bears were quick to secure their place, thus we found ourselves a doji. Will the bulls going to win this week?
EMPIRE EAST LAND HOLDINGS, INC (ELI)
Looks like ELI still have the bullish bias after it close with a Doji candlestick the second time around. our observation remains the same after it closed although during the morning session we thought that it will fall down because of discouragement that some traders were having. We are looking at 23.6% Fibonacci Retracement level as our resistance while support near 1.0 or 38.2% Fibonacci Retracement level.
IP E-GAME VENTURES, INC. (EG)
Looks like the support line of EG is a strong one. Early last month, around this level is where the rally started. But it was a one day wonder as it move downwards after that. Last week, this level has been tested many times and last Friday, it seems the bulls have already gained control. Is EG ready for a breakout? Are we seeing a Falling Wedge pattern on our chart?
The Falling Wedge is a pattern that starts 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 pattern has a bullish bias. but cannot be realized until a resistance breakout.
JG SUMMIT HOLDINGS, INC. (JGS)
Looks like JGS is off to a good start last Friday when it bounce near the 38.2% Fibonacci Retracement level. Now it is facing the wall created by 23.6% level, will it be an easy wall to break? Looks like the 3 last candlesticks formed a Morning Star
The Morning Star formation starts with a large red candlesticks which suggests that the bears are in command. Then we see a small candlestick signifying that bears are about to get tired. Then on the third day we see a green candlestick large enough to close mid of the first day’s real body. Let us see if confirmation will be seen tomorrow.
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