Tyro Trader's Analysis - Aug 16

Our index continues to trek a higher after filling the gap. As of this writing though, the DOW is in the red. This could be seen as a healthy pullback considering its massive rally the past 3 days. If the DOW does end down, it could possibly serve as an added excuse for PSE to have a pullback of its own considering we've also gone up for 5 days in a row. As this week, I've managed to rebalance a bit of my portfolio -- lessening my exposure in blue chips and venturing into fairly quick (for my standards, at least) trades and speculative plays. Will maintain this stance until prices start moving above short term MAs and MACD crossing above zero line.

Yesterday, East Asia Power Corp (PWR) broke out of its symmetrical triangle. Today however, it closed with a shadow. If prices do continue to drop, the breakout could've been simply a bull trap. MACD does look a bit encouraging though as the buy line is already pointing up. All we need is cross up to strenthen the resumption of its breakout.

Waterfront Philippines Inc (WPI) also did its own symmetrical triangle breakout. Unlike PWR though, WPI closed with a nice looking hammer today albeit on lower volume. P0.60 could serve as its short term support while having P0.77 - P0.79 as the next major resistance.

Good luck with your trades!

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.