BLOOM: At make or break point

Bloomberry Resorts Corporation

BLOOM failed to break so far its 9-month downtrend resistance line and recently on a breakdown from a Rising Wedge pattern, a bearish trend continuation pattern with measured target around 2.40~2.80 area.

Trading Plan
- Avoid for now unless there's a breakout from its downtrend price channel that is supported by huge volume.
- Potential reentry in case there's no breakout would be to wait on another correction or pullback near the downtrend support line.

ICT: Diamond Bottom

International Container Terminal Services, Inc.

Diamond Bottom
The price seems to have reached a bottom, showing signs of reversal as it has broken upward after a period of uncertainty or consolidation. The Diamond Bottom pattern begins during a downtrend as prices create higher highs and lower lows in a broadening pattern. Then the trading range gradually narrows after the highs peak and the lows start trending upward. When the price breaks upward out of the diamonds boundary lines, it marks a significant reversal to a new uptrend.

Event Date: Feb 22, 2016
Opportunity Type: Intermediate-Term Bullish
Close Price: 60.00
Target Price Range: 66.25 ~ 67.50

Price Period: Daily
Volume: 2,317,850
Pattern Duration: 27 days
Inbound Trend Duration: 31 days

Analysis and Chart Source
Firstmetrosec Recognia technical event scan tool
http://fmsec.com.ph/

PSPC: Potential breakout play

Phoenix Semiconductor Philippines Corp.

PSPC on a potential breakout:

• Breakout from an Invested Head-and-Shoulder pattern with measured target around 2.
• Breakout from its 15-month downtrend line with measured target around 2.2~2.3.

*Immediate resistance at 1.94.

*It recently completed the Bearish AB=CD harmonic pattern (a potential signal to take some profit on short term position)

Trading Plan

- If trading the Inverted Head and Shoulder pattern breakout, buy near the breakout area with stop-loss near the recent swing low and TP at 2. Trade with caution as the risk/reward ratio on this setup is quite low.

- If trading the downtrend line breakout, buy near the breakout area and TP at 2.2~2.3 range. Set stop-loss near the recent low for a risk/reward ratio of at least 1:2.

- If holding a position from the recent dip near 1.30, the completion of a Bearish AB=CD harmonic pattern is a potential sign of a pullback or retracement to follow. Take some profit on short term position and profit run the rest.

FGEN: Potentially ripe for short term profit taking

First Gen Corporation

FGEN recently hit the measured target from Double-Bottom pattern breakout around 20.74 (note that the Double-Bottom pattern formed up with a Bullish Divergence pattern on RSI which makes a strong case of a high probability trade entry).

FGEN is now approaching the resistance zone around 21~22 which is around 50% retracement from the recent peak (or 38.2% retracement from October 2015 peak). The 21.1 resistance is also the previous support prior to breakdown. These convergence of resistance levels is a potential short term profit taking area for short term positions.

Bullish Scenario:
- The breakout from 4-months downtrend line supported by above average volume is also a potential breakout play. Measured target is near 25.

Trading Plan
- If trading the Double-Bottom breakout, take some profit like 50% of the position and profit run the rest with trailing-stop.
- The resistance zone shown in the chart is also a potential short term target to take profit. Scale-down short term position and profit run the rest.
- If trading the breakout from 4-month downtrend line, buy near the breakout area with stop-loss around the double-bottom breakout resistance level (around 19). Set TP near 25 for a risk/reward ratio of at least 1:2.

MCP: Chart Update

Melco Crown Philippines

MCP recently found a roadblock at the convergence of multiple resistance levels.

The Head-and-Shoulder Bottom pattern (Inverted H&S) remains valid for now. The neckline is also the immediate resistance area around 2.34. Immediate support at 1.86.

• A breakout from this H&S pattern will have a measured target around 3.5.
• Breakdown from support with price action moving towards the H&S head area will likely invalidate the Inverted H&S pattern.

Recent rally is still considered a DCB (Dead Cat Bounce) from the longer term downtrend line if it fails to break that trend.

If major support at 1.15 holds up from a sharp correction, potential Double-Bottom pattern will likely develop. A breakdown from 1.15  will confirm the DCB and price action will likely move towards new lows.

Note
This is just an update from the previous post "MCP: Potential DCB":
http://psetrends.blogspot.com/2016/02/mcp.html

Trading Plan
- Avoid for now.
- Buy only the breakout from Inverted H&S if it also breaks the longer downtrend line supported by above average volume.

TEL: Inverted Head and Shoulder pattern

Philippine Long Distance Telephone Company

Head and Shoulders Bottom
The price seems to have reached the end of a period of "accumulation" at the bottom of a major downtrend; the break up through resistance signals a reversal to a new uptrend. The Head and Shoulders Bottom is created by three successive declines in the price following a significant downtrend. The lowest low (head) is in the middle, flanked by two higher lows (shoulders) at roughly the same level. Volume is highest as the price makes the first two declines, then diminishes through the right shoulder. Finally volume surges as the price closes above the neckline (drawn between the two highs) to confirm the reversal.

Event Date: Feb 16, 2016
Opportunity Type: Intermediate-Term Bullish
Close Price: 2,280.00
Target Price Range: 2,522.00 - 2,587.00

Price Period: Daily
Volume: 240,255
Pattern Duration: 74 days
Inbound Trend Duration: 89 days

Analysis and Chart Source
Firstmetrosec Recognia technical event scan tool
http://fmsec.com.ph/

X: Head and Shoulders Bottom pattern

Xurpas Inc.

The price seems to have reached the end of a period of "accumulation" at the bottom of a major downtrend; the break up through resistance signals a reversal to a new uptrend. The Head and Shoulders Bottom is created by three successive declines in the price following a significant downtrend. The lowest low (head) is in the middle, flanked by two higher lows (shoulders) at roughly the same level. Volume is highest as the price makes the first two declines, then diminishes through the right shoulder. Finally volume surges as the price closes above the neckline (drawn between the two highs) to confirm the reversal.

Event Date: Feb 16, 2016
Opportunity Type: Intermediate-Term Bullish
Close Price: 12.96
Target Price Range: 15.00 - 15.50

Price Period: Daily
Volume: 1,291,500
Pattern Duration: 29 days
Inbound Trend Duration: 39 days

Analysis and Chart Source
Firstmetrosec Recognia technical event scan tool
http://fmsec.com.ph/

ABS: Support Play

ABS-CBN Corporation

ABS is potentially bottoming out as it consolidates near the support area (53~54).

Although no reversal pattern or signal found yet, there's a potential for position play or range trade setup.

Trading Plan
- Buy or accumulate near or at support area.
- Short to medium term TP at 60.
- Stop-loss around 51 for at least 1:2 risk/reward ratio.
- Try to scale down when initial TP is hit and profit run the rest using break-even stop or trailing-stop.

Note
- With general election coming soon this may, this is also a potential position play using that event as catalyst.

PIP: Potentially Bottomed Out

Pepsi-Cola Products Philippines, Inc.

PIP is potentially bottoming out at 2.9 as it continues to consolidate around that area.

Price congestion also shows a couple of Doji candles and Inverted Hammers - considered as potential reversal signal and bottoming out pattern when found near a major support area.

*Bullish divergence on RSI.
*Immediate resistance at 3.6 (previous support prior to breakdown that now becomes a resistance).

Trading Plan
- Buy near support (2.9)
- Near term TP = 3.6
- Stop-loss just points below 2.6 for around 1:2 risk/reward ratio.

ALI: Toppish Pattern

Ayala Land, Inc.

ALI is now potentially forming a toppish pattern with a bearish Evening Star candlestick pattern. Pullback/consolidation may likely follow.

*Immediate resistance at 33.
*Immediate support at 30 or around 38.2%~50% retracement area (29.8~30.4).

Trading Plan
- For medium to long term position, accumulate near 30 or below.
- For short term position, buy on pullback using the Fibonacci retracement levels as reference. Observe any reversal patterns around the 38.2% ~ 61.8% retracement. Avoid if downtrend momentum continues without any sign of bottoming out pattern.

MCP: Potential DCB

Melco Crown Philippines

MCP's recent rally is now approaching its 1-year downtrend resistance line. Failure to break this trendline will mean another DCB (Dead-Cat-Bounce) for MCP.

*RSI now comes off from Overbought territory (technically using a downtrend bias overbought threshold at around 55~60). This is basically a bearish bias pattern.

Trading Plan
- Avoid for now (buy only on breakout that is supported by huge volume).
- If currently holding MCP, potential profit taking area near the downtrend resistance line (or scale down position to protect some gains).

MRSGI: Approaching the Downtrend Resistance Area

Metro Retail Stores Group, Inc.

A Bearish Doji Star pattern formed up on MRSGI near its downtrend resistance line after the recent rally. This is a bearish reversal pattern but still needs confirmation.

Trading Plan
- Avoid for now and wait for a pullback near support or breakout from its downtrend resistance line (with volume) before taking any position.
- Potential BUY near its support at 2.95.

DNL: Reversal Pattern at Immediate Resistance Area

D&L Industries, Inc.

A Dark Cloud Cover candlestick pattern formed up around the immediate resistance area of 7.9 (bearish reversal pattern). Factors indicating the importance of this signal are:

1. The greater the penetration of the first candle by the second candle (yes).
2. Both candles are marabozus  (yes).
3. The second body opens above a major resistance level (yes, above the immediate resistance at 7.9).
4. High volume on the second day (no, possible pullback only).

Pullback or retest of major support may potentially follow.

*LitWick pattern reliability: HIGH

Trading Plan

- Buy/accumulate the retest of major support near 7. 

- Initial TP should be around the 7.9~8. Profit run the rest with trailing-stop.

- Stop-loss around 6.7 or a few points below it to have at least 1:3 risk/reward ratio.

*If the pullback is only around 50%~61.8% retracement, observe any reversal pattern for a potential trading opportunity.