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.