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Monday, February 25, 2013

Case Study: PSE

Rumors here and there...
100% Stock dividend... Merger... Etc etc...

Honestly, I shy away from reading all those news... true or not...
It clouds my mind. It messes with my emotions. It leaves me in a delusional state.




Let's quiet the noise and focus on the charts.

Chart as of 2.26.2013



In blue box 1, there was a sideways movement at the highs (above 23% fibo) that broke out a little over a month after MACD gave a SELL signal.

After the breakout, we saw a Gravestone Doji that signaled a possible reversal. But prices held up nicely and is currently consolidating at the highs again (above 23% fibo). And again MACD gave a SELL signal just a few days ago. 

Sometimes, SELL signal on MACD actually means BUY.

Let's watch if it is indeed a BUY on this particular stock.
So I'm monitoring box 2 closely.

If it breaks out, it could reach its minimum target -- 52 week high of Php 500.



Will there be a repeat? 
I'm giving it a month or two...


Don't forget to set your stops.








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