PEP Rally

PEP is currently on an upward trend despite the weakness in our market. Last Friday, it reached a high of P1.46 before closing at P1.34. It's MACD above zero and pointing upwards. It is now poised to take out its 52 week high of P1.52. A look at the chart however shows that the last time PEP reached P1.50 was way back July 13, 1999. Thus I'm seeing a cup and handle formation in the making. Breakout point is above P1.50/P1.52 and I see an upside of at least P1.00 equvalent to around a 66% return. Are you ready for a PEP rally?

MEGa Bear

I see another double whammy for MEG. It's failure to breach past P2.70 for four days last week eventually led to its breakdown. Not just a breakdown from its ascending triangle formation it had been forming at that time, it likewise confirmed what I see as a double top formation, a bearish pattern. Target price? Piso??? On a side note, I've seen a similar pattern below in EEI (see my previous post). Though I expected EEI to break down further, it actually reversed and broke above its neckline. Bad call? I don't really know. Let's see if MEG can recover.

SINO Takes a Breather Too

The pattern looks familiar (see post on CMT below). This stock is attempting to breakout from what I see as a descending wedge pattern. It is currently taking a pause after its run up two weeks ago. From what I see, it seems that it has formed a pennant, a continuation pattern. MACD is pointing upwards and about to cross the zero line. Looks like a runup is brewing soon.

CMT Takes A Breather

After last week's successive run for CMT from P0.70 to P1.02, the market took a breather this week. A look at the chart shows that it has formed a bullish flag. Volume started to decrease at the start of the flag formation. I expect, however, volume to peak up upon breakout from this flag. Today's strong close could be a signal. MACD continues to point upwards. Let's see if CMT will resume its uptrend next week.

Will ROX Rock?

Roxas Holdings belongs to one of today's top gainers. A review of the chart shows that it's been trying to breakout from an ascending triangle formation for the last 2 days including. No volume however was able to support that. It managed to close strongly today at P3.30 above the breakout point of P3.10. It's MACD above zero line and are now pointing upwards. It is likewise trading above its moving averages - a bullish signal. Will volume support it this time? If it does, target price for this stock would be around P4.10 level.

PSPT Revisited

A look at PSPT's chart shows that it's target price has been achieved. Five trading days after breaking down from its ascending triangle pattern, PSPT went to as low as $10.76 before closing at $11.60. Its MACD in negative territory and is now pointing downwards. It is now trading below all moving averges. For the last 2 days however, it's been holding on to the $11.60 level. Let's see if this support will hold, otherwise, next support is around the $10.25 level. Let's see how PSPT develops into this coming week.

Brownout!

A. Brown, Inc. - This week's review of my BRN chart shows that this issue is poised to go down. It had been consolidating in a bullish ascending triangle pattern. However, last February 6, it broke its support line when it closed at P3.80. It tried to recover the next day but couldn't go past P3.80 which I believe is now the resistance. Looks like this issue has weaken at the moment. Target price is around P2.70.

The WEB Breaks Out

The first day of February brought WEB to one of the PSE's top gainers. A review of the chart shows that indeed a breakout occured from what I see as a bullish ascending triangle pattern. Height of the base is P0.009. Target price is projected at P0.049, a 14% upside from last Friday's close of P0.043. What makes this stronger is that the breakout was confirmed by a huge surge in volume. At the same time, I see it broke out from its descending channel pattern.

MERcury Rising

MERalco appears to have broken out from what to me is a descending wedge pattern. It closed last Friday, Feb. 1 at its high of P84 coupled with its highest volume turnover since 9/4/2007. Looks like possibly heading towards the P100 mark but expect heavy resistance between P90 - P100. Will MER reach boiling point? Abangan!

No Support for PeopleSupport?

Of what was supposed to be a bullish ascending triangle formation ended up in a breakdown situation for PeopleSupport. From its previous close of $14.03, it immediately gapped down to $13.75 before closing to $12.51. The bears have immediately taken over PSPT. I see this heading down to around $11.25.

After posting this chart, I learned that PSPT for the 2nd time rejected IPVG's revised takeover offer of $17 per share. Looks like the street failed to support it this time.

For IPVG, no effect whatsoever as it stays flat at P4.85 today.