Monday, April 25, 2011

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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