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.