San Miguel Party Resumes

On a lethargic market session earlier today, San Miguel-related stocks once again took center stage, as SMC, PCOR, and SMB all posted significant gains with 5.5%, 6.1%, and 2.8% respectively.

SMC finally resumed its bullish momentum, after dipping near its breakout point at 125.00, proving that conservative breakout traders, those that buys when price dips near the breakout point chronicled on this post, can also have fun and join the ride.

PCOR on the other hand, looks to have broken out from what appears to be a pennant formation, with a potential price target of 18.50, based on the pole established during the last part of November. PCOR also looks to finally overcome the 13.00 level, which has eluded its price action last December 1. Stops could be placed around the 11.00 levels, in the event that our expected price action failed to materialize.

Meanwhile, SMB continues to trade very volatile, but still managed to close at 29.50, possibly moving sympathetically with SMC and PCOR.

Tomorrow, lets find out if San Miguel can outdo its bullish party hosted during the latter part of November.

Pinoy Stock Trader

Random PSE Musings - Is the San Miguel Party Over?

For the first time in 10 trading sessions, SMB finally went red, closing at 25.00 pesos, or down by -7.6%. While this is not totally unexpected, the actual decline came to be a surprise, as SMB went as high as 31.90, before turning about face, and crashing down. With its very volatile move earlier today, at least SMB has established an immediate support level at 22.50, and could consolidate between this level and 31.90 for the time being.

Still, the next few sessions will be crucial, as we still have to know if the 22.50 support level can be held. If not, then expect another bloodbath for this issue, and can go as low as 18.00 as its next target.

While PCOR managed to hold on to its gains and close at 10.10, it still is a far cry from its day high at 11.80, also burning a lot of investors in the process. LIB even joined the party early on, but this also closed far from its daily trading high.

Now, rumors has it that SMC, the parent company, is planning to offer secondary shares to the investing public next year, offering SMC shares between 150-200, which could probably explain why SMC-related stocks are moving northwards simultaneously. Well, it is up to you if you want to join the San Miguel party, or just look away, thinking that the party is over. 

Petron Corporation (PCOR) – Breakout From Symmetrical Triangle

After months of stagnation between 7.30 and 6.20, PCOR finally broke out from the symmetrical triangle resistance at 7.35, and finish higher at 8.61. While the price target for the symmetrical triangle seems to have been reached already at 8.80, outlook for Petron still looks good, as it may consolidate and establish a flag formation, before going further up.

Immediate support for PCOR is at 7.90, which was the previous high from September 27, 2010, and any break below this level should be a signal to sell this stock, either to rake in profits or to cut any losses. Still, one can’t stop thinking that PCOR might have moved, because of the strong move of its affiliated companies, like SMB and SMC. News on these moves are of course brewing.