Tyro Trader's Analysis - July 27

PSE finally moved up today after four days of decline. 4450 will now act as our short term support.

Lopez Holding Corp (LPZ) continues to be in my watchlist. Notice that its nicely forming a symmetrical triangle. MACD, Bollinger Bands and DMI (not shown) indicators point to consolidation but stochastics (which normally gives off the earliest trigger) signalled a buy today. Could the Lopez stocks (LPZ / MER / FGEN / FPH) be the next rotational play? If one were to enter this stock, buy within the triangle; cutloss if it drops below the triangle (exact price would depend on your position size & risk appetite) or let your profits run if it breaks above it. Given the small range of the triangle, risk should be minimal at this point.

One of the lagging stocks in the property sector finally made a move today. Sta Lucia Realty (SLI) is on the verge of breaking out from a six month downtrend. Notice that the price closed exactly at the resistance line today. The following factors tend to favor a breakout:
> Huge volume today which means that alot of sellers were already absorbed by willing buyers.
> MACD is about to cross up the zero line which suggests that an uptrend is about to take place.
> DMI (green line pointing up / yellow line pointing down) is also suggesting that a trend is about to commence.

Semirara Mining (SCC) proceeded to correct today. Notice yesterday that it had a huge volume turnover but price range was very restricted; PhP1.00 to be exact - telltale sign of distribution. Broker Macquarie (code 121) kept on buying though. If one were to enter or re-enter this stock, a safe price would be near 224 which is right about along its uptrend line support and near its previous breakout point. Just have your stops ready in case its correction becomes deeper.

Aboitiz Power (AP) continues to nicely respect its uptrend line. Its correction from its P33 high last week was a needed respite to relax its overbought stochastics; which incidentally is now pointing up again. Could it finally break past P33 in this run. Volume today was just on the low side for my comfort though.

Good luck with your trades as always!

All charts courtesy of citiseconline.

Disclaimer: My above analysis are just that: analysis. I am in not in anyway soliciting for you to buy or sell any security issue. The only person accountable for the trades you make would be yourself and I cannot be held liable in any way for the same.