This week we will only have 4 stocks to monitor for possible bounce and continuation. GERI with its flag may have been done with its consolidation and continue its trend. In addition we have PNX, PBB and TA.
Trader’s Logbook PSE Stocks Worth Watching May 6 – May 10, 2013
GLOBAL-ESTATE RESORTS, INC. (GERI)
Looks like GERI is taking a pause after going up from 2.2 to 2.7 Is it done resting? Current price is at 23.6% Fibonacci Retracement level. The price action since mid April creates a flag formation which is regarded as a short-term continuation pattern that mark a small consolidation before the previous move resumes.
The price action also shows that 20-day SMA line acted as a good support. Let us see if this week is its week.
PHOENIX PETROLEUM PHILIPPINES (PNX)
PNX is mid way to recovering from the big loss last April 25 and 26 after it made a rally last April 30 but bearish sentiment became obvious after we had the last two candlesticks. Is it just a “pause” from the rally or the Harami pattern suggest weakening of the bulls. Currently the price is above the 50% Fibonacci Retracement level. If the Harami will not be confirmed then it might continue its ascend and hit 10.50
In case this will turn sour and pierced the 50% Fibonaaci Retracement level, 9.20 will be our next support.
PHILIPPINE BUSINESS BANK (PBB)
Currently PBB is at its support line (around 34). Last time it hit this level it bounced up to 37. Will it happen again? The Gravestone Doji found last few trading days ago shows indecision among traders and this sentiment extends to two more days. Usually if we will see a doji at the lower part of the trend, this suggests reversal. Is PBB ripe for one?
TRANS-ASIA OIL AND ENERGY DEV (TA)
We were waiting for TA to create the handle for the cup last time (Shooting Star on TA, Cup and Handle soon?) and speculating 2.50 might be a good entry price but it didn’t happen. Instead it went up for a few days. I was upgrading my entry price at 2.7 because I thought it will test the newly found support until last Friday it suddenly dip following the bad news. The dip was quite big as it went down to 2.50
Taking a second look at TA right now we could see that the 23.6% Fibonacci Retracement level acted as a support last Friday with the 20-day SMA line as backup. Did the traders who bought at 2.5+ level did a sound decision last Friday or they were catching falling knives?
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