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

SMC - Breakout From Flag Formation, Confirmed

San Miguel has finally broken out from the 125.00, flag formation resistance, as mentioned in my blog entry just yesterday:

SMC – Another Flag Formation Waiting to Breakout?

Congratulations to those who have bough upon breakout, as technical target for this move should take SMC towards the 150.00 level. To those that have missed out on the breakout, you can wait for the pullback just above the 125.00 level, IF there will be a pullback hehe. Otherwise, just try to buy on a price you're comfortable with, as it is not healthy to go on chasing prices.

Now what to expect for SMC tomorrow? Given that SMC finished very strong on today's session, and on the day high, tendency is that SMC will probably open strong also tomorrow, to fill in pent up demand from today's session. This is possible, as long as the US and European markets doesn't do anything crazy, or the Kim Jong Il finally going mad against South Korea.

Still, as with any trades, always have a proper trading plan. If price retreats, and falls below 115.00, which is the flag formation support level, then one should cut this stock, as this would signal a failed technical move. 

Pinoy Stock Trader

SMC – Another Flag Formation Waiting to Breakout?

Following PX's breakout last Monday from a flag formation, or descending triangle whatever you look at it, San Miguel Corporation is now also trying to breakout from a flag of its own.

After establishing the pole last November 18 and 19, SMC has consolidated between 115.00, and the elusive 125.00 resistance level. Now if SMC will finally manage to breach this level convincingly within the next few sessions, we will be looking at a price target near the 150.00 level, which would present a strong psychological resistance.

To trade SMC, one should wait for the successful assault against the 125.00 level, accompanied with strong volume before buying this stock. Don't preempt any breakouts, and set your stop-loss level below the 115.00 flag support level. With this in place, you should be fine.

While MACD shows that a bearish crossover with the signal line is imminent, chart-wise, SMC still looks good. And coupled with rumors circulating that San Miguel is going to offer secondary shares to the market, with price ranging between 150 to 200 pesos, there is a strong motivation for the jockeys to push SMC towards the 150 levels. Provided of course, that this is true hehe.

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.