DD Chart Update (trend continuation pattern)

DoubleDragon Properties Corp.

DD is again on another breakout from a Bullish Pennant pattern, a trend continuation pattern. Projected target from this breakout is around 49 (45~49 range).

*DD is overbought on many indicators.

Previous DD update:
http://psetrends.blogspot.com/2016/01/dd-position-trade.html

Trading Plan
- Hold and profit run the remaining position from previous trade (see previous DD post).
- If trading this pattern, set tight stop around 32.7 for a risk/reward ratio of at least 1:2 (to initial tp at 45).

SMC: Sell signal

San Miguel Corporation

A bearish divergence pattern on RSI has formed up as price entered the resistance zone. This is a potential sign of an impending pullback or correction to follow. RSI also gave a sell signal as it crosses below the overbought territory.

A 3-Inside Down candlestick pattern also formed up at the resistance zone which is considered as a high reliability reversal pattern.

*Selling pressure has already started but still requires confirmation (Chaikin Money Flow).

Trading Plan
- Take some profit or scale down (trail stop the remaining position).

MBT: Breakout from Inverted H&S and 11-month downtrend line

Metropolitan Bank & Trust Company

MBT is currently on a breakout from two bullish patterns with one measured target range already hit.

1. Breakout from Inverse Head-and-Shoulder pattern with projected TP = 90~92.
2. Breakout from its 11-month downtrend line with measured TP around 80~81.

*RSI at overbought territory.

*Immediate resistance area at 86~87.5.

Trading Plan

- If trading the 11-month downtrend line breakout, take some profit or scale down position and profit run the rest with trailing stop or break-even stop.

- If trading the Inverse H&S pattern breakout, set TP around 90~92. Adjust stop-loss to at least break even point.

EDC: Short term profit taking pattern

Energy Development Corporation

EDC has potentially completed a Bearish AB=CD harmonic pattern with potential reversal zone (PRZ) around 6.29 (6.21~6.38 range). The harmonic pattern also potentially completed as EDC hits the immediate resistance at 6.30.

*RSI entered the overbought territory while price failed to break resistance, a bearish sign.
*Trend remains strong (DMI/ADX).
*Buying pressure remains intact.

Trading Plan
- Wait for reversal pattern.
- Or take some profit/scale down position and profit run the rest with trailing-stop.

CNPF: Toppish pattern

Century Pacific Food, Inc.

CNPF recently kissed the immediate downtrend resistance but failed to make a breakout despite the huge traded volume. This suggest a toppish price action and a potential sign of distribution.

*ADX also indicates a potential end to prior trend.
*Selling pressure already started.

Trading Plan
- Take some profit on short term position (like take half and profit run the rest with trailing stop in case of a retest of resistance followed by a breakout).

MCP: Potential Breakout

Melco Crown Philippines

MCP is now on a potential breakout from both the 4-month downtrend line and the Inverse Head and Shoulder pattern supported by good volume with measured targets at 2.8 and 3.5 respectively.

*The 15-month downtrend line has been broken already.
*MCP bottomed out already at 1.15.
*ADX still points to a weak trend and more of a sideway price action (consolidation).
*No buying pressure yet (Chaikin Money Flow).

Previous MCP chart update containing this potential Inverted H&S pattern can be found here:
http://psetrends.blogspot.com/2016/02/mcp-chart-update.html

Trading Plan
- Buy near the breakout area.
- Set target depending on the breakout pattern (2.8 for the downtrend line breakout and 3.5 for the Inverted H&S).
- Set the stop-loss just a few points below the right shoulder's low (1.86).
- This is a high risk trade for the downtrend line breakout play as the risk/reward ratio is very small (around 1:1). Around 1:2 risk/reward ratio for the Inverted H&S breakout play.

Technical Analysis School: Support and Resistance

Support and resistance represent key junctures where the forces of supply and demand meet. In the financial markets, prices are driven by excessive supply (down) and demand (up). Supply is synonymous with bearish, bears and selling. Demand is synonymous with bullish, bulls and buying. These terms are used interchangeably throughout this and other articles. As demand increases, prices advance and as supply increases, prices decline. When supply and demand are equal, prices move sideways as bulls and bears slug it out for control.

Read more here:
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:support_and_resistance

MEG: Breakout from Ascending Triangle pattern

Megaworld Corporation

MEG is on a breakout from Ascending Triangle pattern with measured target around 4.2 which is near its 11-month downtrend line.

*Buying pressure already started early February.

Trading Plan
- Buy near the breakout area with stop-loss at recent swing low for a risk/reward ratio of at least 1:2.

MPI: At the resistance zone

Metro Pacific Investments Corporation

MPI is now at the resistance area (6.1 ~ 6.3) and also kissed the resistance line of its uptrend price channel.

*RSI at overbought.
*Potential bearish pattern developing on Stochastic.

Trading Plan
- Take some profit (sell) at resistance area or scale down position (like selling half and profit run the rest of the position with trailing stop.