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.