Stock Analysis: PSEI, TEL, CNPF, DD, MEG, MWC - Marvin Germo

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DD March 3 2016

Stock Analysis: PSEI, TEL, CNPF, DD, MEG, MWC

By: Marvin Germo | March 4, 2016

The market overall has been better over the past few weeks and is trying to push back to become bullish again.  While this is happening in the broader market allot of select stocks have already started to breakout and are pushing higher than ever before. Again even in a down market you can position in stocks that are going against the general direction and are moving up or if you are passive you can select those stocks that have been battered down and have formed some kind of support.  If you would like to learn more about stocks you may attend our Stock Smarts sessions in Manila, Cebu, Australia and our annual investment conference.

Here’s are snippets of the charts you requested.

PSEI – PSE Index

After the market reversed into a downtrend last April 2015. The market is now showing some forms of life and as it has finally escaped from the 11 month downward movement.

For the market to turn bullish bullish again it must breakout of this following price ranges:

7,082 – breaking this price range moves the stock from bearish to bullish. At this level the stock may experience a lot of selling but if the stock stays above this area we may expect the stock to start to reverse and go back and move upward once again for greater lengths. No more downtrend!

7,290 – If the PSEI goes above this range, this brings the market back to its longterm upward path! This is good news to a lot of investors and a lot of trend followers! You may now continue to start to buy with more conviction and confidence.

For all of this things to happen the price range below is a pre-requisite and should be broken.

6,915 – The stock must hold and stay above this level. If not, the stock just goes back to its downward path and it may drop to 6,671 over the short term.

PSEI March 3 2016

TEL – Philippine Long Distance Company

A bearish stock just got even more bearish. You have to remember as long as a stock remains bearish, extreme moves like this downward should not surprise you. Think about its just like the stock that is already burning and the latest disclosure of the drop in earnings just added more wood to what was already burning. The stock has been in a downtrend since the 4th quarter of 2014 and hasn’t shown any signs of reversing.

On a technical price perspective, if it drops below 1,751, the stock may retrace lower to around 1,400 levels. Just to put perspective to this, 1,878 is now the nearest resistance. It must break past this to show any shot of at least going up in the short to mid term.

While TEL is dropping in its earnings, GLO is posting amazing growth and has grabbed 5 Million worth of customers from TEL. If dividends aren’t appealing to you as it is not as attractive as where it was before, I would suggest to avoid this stock first and position with other companies that have dropped but is showing amazing signs of growth.

TEL March 3 2016

CNPF – Century Food

The stock now has turned bullish after the breakout and the reversal from the 17.2 price range. For position traders you may consider to start to come in. This is under the concept that 17.6 must hold and the stock stays above this level. If the stock fails to stay above 17.6 you may start to consider to sell.

For quick traders, the next target price for you to consider selling are at 18.5 and 19.6.

CNPF MArch 3 2016

DD – Double Dragon

Everyone’s favorite stock is at it again! This was a stock we studied in Stock Smarts General Santos last weekend and the buy signals were just amazing! This just shows how technical analysis works! To those from General Santos, I hope you were able to use and try the lesson we talked about over the weekend.

After the breakout at 25.4 the stock is more bullish than ever. Over the short, mid and long term the stock is still strongly pushing upward and has not shown any signs of stopping yet. To those who positioned at the breakout continue to hold your stock first and till there is any clear reversal that the stock is reversing downwards.

For those doing quick trades, place 30 as your target price should you see some resistance at this area. If DD breaks out of 30, the game is now wide open for the stock to hit 35 – 40!

It’s an early Christmas to investors of Double Dragon! Congratulations to investors who bought at 2 and are still holding on to the stock.

DD March 3 2016

MEG – Megaworld Corporation

This one goes out to a good friend Salve Duplito!

Over the past few years, MEG has been everyone’s favorite trading stock because of its volatility and its ability to swing back and forth to give you good swing trades. Not to mention a lot of investors love its overall growth prospects and its exposure to the young and vibrant BPO sector.

Looking at the chart above, the stock is still bearish over the mid to long term but over the past 2 weeks or so the stock has started to turn bullish over the short term.   For those who are trading I would consider 4.2 and 4.4 as my target prices should I want to make a quick trade and sell the stock. Watch this price ranges careful if any resistance is encountered you may take profits.

If MEG breaks out of 4.4, the stock now reverses and turns bullish. For position traders use this area for you to accumulate even further as the stock has stopped dropping already.

Make sure thought that the stock stays above 3.5 because if it fails to hold this levels all of this parameters wont work. Make sure to sell if MEG drops below 3.5.

MEG March 3 2016

MWC – Manila Water Co., Inc.

The stock is also progressing in its uptrend! The stock also just bounced from the short term support and now has the chance to have a target price of 27.3 and 29.6.   Just watch out for the ex-date of MWC when it releases its dividends.  Watch out if the drop takes the stock away from the uptrend or if it just goes back to its support.

If it stays the support then well and good!

MWC March 3 2016

I hope this charts help you in your trades but I hope that these stocks will just serve as reference points on how you do things cause I really want you to analyze stocks on your own.  Because the best place to earn in the market is when you do things with conviction and confidence!  God bless you and I hope this brings you 1 step closes to your dreams of Financial Freedom.

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