BEL – Triangle Breakout Imminent?

Earlier today, BEL attempted a worthwhile attempt to breakout from the symmetrical triangle it is forming since the beginning of 2011. It went as high as 5.95, before settling and closing at 5.80. Still, a breakthrough could be made on tomorrow's trading session. And if a price breakout does indeed happen, BEL could be targeting a nice 9.00 digit.

A clear cut above the 6.00-6.10 levels would signal the breakout from the symmetrical triangle, especially if accompanied with significant volume. As it is, a good entry point is going to be just above the 6.00-6.10 levels, or one could wait for the pull-back after the immediate breakout. Which is likely, since after the 6.10 levels, the next resistance is at the 6.50 level.

In the event of a breakout, and one does make a position with BEL, stops could be placed just below 6.00, as this would mean that breakout is false, and that the consolidation still is not over. Still, as shown from the weekly chart posted above, BEL's uptrend still is going strong, just as directional bias is still pointing upwards.

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Mining Stocks Very Bullish, as PX, LC, MA, NIKL Creates New Highs

PX has now broken out from what appears to be a pennant formation at 18.00, and now looks on course to retest the 20.00 key resistance level. Also, rumor has it that there will be a special block sale to be transacted at 21.60, so if there is indeed truth to this, they need to push the price of PX to within 5% of 21.60, before the special block sale can be done.

If you don't already have PX, a nice entry point should be any price near 18.00. However, if the train continues to steam ahead, don't try to chase the train. Trading stop for PX should be below 17.30.

LC and MA have both registered new highs, with LC closing at 0.69, and MA at 0.041. Sky seems to be the limit for these two issues, as little resistance are being offered at these new highs. However, the same cannot be said for LCB, which according to the rumor mill, is about to be declassified, and to be merged with LCB, which could explain its 2.6% drop and close at 0.75.

NIKL has alro broken out from a rounding bottom area pattern resistance of 23.00, and also establiehed a new all time high of 23.70, and close at 23.55. When one measures the breadth of the area pattern, price target for NIKL looks to be at 27.00, within a three-month time frame.

This is a steady stock, so don't rush to get in if you were unable to buy on breakout. Wait for a price pull back, and try to get in as near as 23.00, with 22.00 the stop limit for this trade.

However, as can be seen on the weekly chart of the PSE's Mining and Oil index, this sector continues with its meteoric rise since early 2009 as rising commodities prices, particularly gold and oil, makes for a very bullish market for all the miners and oilers out there.

However, this sector is about to reach the resistance line of the bullish trend channel, so some caution should be in one's thought, if ever one's going long in this sector.

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FGEN Continues Pushing for New Multi-Year Highs!

FGEN is on a fresh 2 and a half year high, as it finished today's trading at 14.52, a level not seen since June 2008. With a strong close and with healtyh volume, the next target in sight is the 15.80 area, and this is only the beginning.

To postion for this trade, try to wait for a pull back, and to a price as near as possible to 14.30, the break out point.

Zooming out from the chart, FGEN appears to have broken out from a cup and handle formation area pattern, giving it a price target of at least 18.00, within an 8-month time frame. So for long-term positioners, FGEN looks good and safe bet. For swing traders, 15.80 is good immediate price target.

Power companies now seem to take center stage, with FPH also making a continuation move from a flag formation to finish up by 3.3%, and EDC consolidating within an area formation where a significant price action may be imminent. AP, however, lags behind. But its long term uptrend remains intact.

Returning to FGEN, 14.20 might be a good tigh-cut level, with 13.20 as the absolute cut level. 

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MBT, BDO Breaks Out, as Banking Issues Lead the Way

Banking in general performed very well on today's trading session, with MBT and BDO breaking out from their immediate price resistances. Overall, market was up, and looking on the charts, it seems that MBT and BDO might still have some legs in continuing the recent bullish move of the local market.

MBT, after consolidating between 66.00 and 69.00 for the majority of April, finally managed to slip past the 69.00 immediate resistance level to close at 70.50, with a high of 71.25. With the needed volume spike not present in this move, target price for MBT in the meantime is at 75.00. Just buy back MBT again, if price action allows it to move higher than 75.00, and accompanied with volume. Stop limits on the other hand, could be placed just below 67.00 for safety purposes.

For BDO, it seems to have broken out from a cup and handle area pattern resistance at 54.00. But as with MBT, BDO's bullish move today was not supported by strong volume, making the confidence level for this trade not that high. Based on the area pattern, we could see this issue to try and retest the 60.00 resistance level, before attempting to test the recent high of 64.00.

PNB also made a strong move, finishing the day at 65.90, up by 5.4%, and could well be on its way to test the 68.60 recent high. Any breach of this high could allow PNB to attem once again to take the 74.00 key price barrier. But for the meantime, wait and see if PNB can manage to find a way above 68.60.

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Is 20 Pesos Just a Dream for PX? Or a Reality?

Afer successfully clearing the immediate 16.30 resistance to close at an impressive 16.48, PX looks strong to try and retest the next immediate resistance at 17.00, which could possible lead to, the mighty 20 pesos resistance level.

With the needed volume confirmation is present earlier today, and the MACD level is trudging along very well, the prospects for PX reaching 20 at least looks good, especially once price action allows it to break past the immediate 17.00 level.

Those late to the party might want to try and get in as near as possible to the 16.30 level, or wait for the break of the 17.00 level. Inversely, stops could be placed just below 16.00, in order to cur any losses, or lock in any profits already made.

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EDC – A Pullback Buy?

EDC has pulled back towards the 6.55 breakout point/support level in recent days, following its breakout move last April 7, establishing highs at the 6.8 levels. Although price actions has weakened, EDC has presented a buying opportunity to us at the 6.55 levels.

At this price, a tight cut limit can be set at 6.40, so risk in this particular issue is limited, while profit potential is good, and basically limitless once EDC breaks the 5.80 barrier, and enter uncharted territories and establish new all-time highs.

Another possible twist is that one can buy upon the break of the 5.80 with good volume, or average up if one already managed to get shares near the 6.55 support levels. Buy near support, buy on breakout, or buy near support add position on breakout, its up to you to decide.

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Uncharted Territory for DMC

Earlier today, DMC has finally confirmed clearing the 41.00 all-time resistance level, and looks poised to continue thrusting upwards, while establishing new all-time records along the way. 

Now, it might be hard to identify the next resistance level as DMC is now on uncharted territories, it might be a safe bet to try to sell just before the next psychological resistance at 50.00.

A safe stop level should be at the 40.00 level, any price action below this level should be your signal to sell DMC.

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I'm Back

Hey guys, sorry for the long absence. Been very busy lately, renovating the home, and taking care of my growing son gave me no time to continue writing in this blog.

Hope I find the time to continue writing articles for the general investing public, and hope you find what you're looking for here, and maybe learn something as well.

Have a nice day and good luck with your trades!

LND – Bullish Swing Continues, Breaks Out From Pennant Formation and New 2.5 Year High

After a major news event for LND, with AGI becoming a major investor, LND has resumed its bullish momentum, after consolidating between 1.51 and 1.27 during the last two weeks. Breaking out from the 1.51 resistance of what appears to be a pennant continuation pattern, LND seeks to target the 2.10 target, when measuring the pole of the pennant.

Last December 9, 2010, LND broke free from a symmetrical triangle formation, before breaking out from what apparently is a two-year cup and handle formation at 0.87. And now, LND also has surpassed the last peak established at 1.48 in 2007, signifying that most of the ipits all these times are now gone, or are now unwilling to sell.

Stops should be placed just below the 1.38 levels. Enjoy the ride!

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SMB – Breakout From Ascending Triangle Imminent?

SMB looks to be poising for another bullish runup, as it tries to take out the key 32.00 ascending triangle resistance. After consolidating within a volatile range of 20 and 32 for at least one month, SMB has finally made a bullish move to break free from this consolidation.

With the PSEi down by at least 2%, SMB managed to gain an impressive 8.4%, to close at 31.45, after retesting the 32.00 key resistance line. It would be interesting to know if SMB will breakout from the triangle, and continue consolidating within the range. If SMB manages to breakout from this level, technical target is at 46.00 level, within a one-month holding period.

As always, with every trades, always put stops. And in this case, the stop level should be placed below the 28.00 support level.

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