Nice way to start the year with our index closing just a tad below the 4,400 resistance line.
Today marks the start of the afternoon trading sessions. I bet some traders are still adjusting their usual afternoon routine given the extended trading hours. Personally though, I still prefer the mornings only session since it minimizes trading lulls moreso since I have a very demanding day job. I'm keeping an open mind though that we'll eventually see an increase in the PSE's trading volume which is always beneficial to any equities market.
DMC continues to power higher after 41 held its ground. With RSI still at a comfortable 69 and prices still within the bollinger band, we're possibly looking at a 43.75 - 44.45 gap fill as early as this week.
MPI is able maintain its upward channel after 3.55 held its ground; MACD however is still sloping downwards so it may consolidate a bit more. At current prices, risk is minimal making it a good candidate for a medium term hold moreso with 65 day SMA already sloping upwards.
One of last year's favorite stock, LC, continues with its consolidation. Looking at the MACD and DMI, it may take awhile before it starts to trend again. Offhand, it may coincide by the time the 6 month uptrend line begins to intersect with current prices.
PSE ended 2011 with a regionally respectable 4.1% gain. Inflation rate on the other hand was last tracked at 4.8% (as of November 2011). Assuming inflation doesn't change until year end, you would've technically lost money had you invested purely on blue chip index stocks. Fortunately, there were lots of 2nd liner, basura and backdoor plays throughout last year which would've greatly helped once portfolio. Hopefully 2012 would be more of a trending year instead of a sideways market so we wouldn't need to rely too much on speculative plays just to beat the index.
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.
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