Megaworld Corporation (MEG)

6-Month Daily Chart



After four months of moving sideways wit downward bias, a bullish formation has formed on the daily chart in the last couple of weeks: Ascending triangle.

Although an ascending triangle is more commonly seen as continuation patterns, there are times that it usually serves as a reversal pattern.

Breaking the resistance of the pattern at 2.20 would suggest a target of 2.40 in the short term.

Short-term upside potential : 9%

Long term upside potential : 29% - Breakout point 2.20 to 6-month high at 2.84.

*Formation of lower trough could simply mean a trading range.

Filinvest Land Inc. (FLI)

6-Month Daily Chart



Now that the initial condition of the system - formation of a higher peak -
is triggered today, the next condition is wait for a correction.

Optimal entries:
50% Fib retracement: 1.10
Gap support : 1.11-1.13.

Initial target will be placed at the new resistance at 1.20.
Immediate upside potential : 9%.

But with the fresh signal, 1.20 is highly likely to be taken out.

Long term upside potential : 36.36% - Lower end of entry 1.10 to 6-month high of 1.50.

**However, prices dropping back to 1.01, despite of looking attractive because of the false notion of "cheaper", would appear to be bearish as it could cause a formation of a lower peak again thus forming a bearish continuation pattern.

Also, the formation of lower peak is a system sell.

Lower? Lower?

The market today closed lower by 16.20(-0.42%) points, closing lower at 3872 despite the fact that other Asian markets are up bu well over 1% as of this writing. The good thing about it is that the volume traded today has dropped significantly to 2.7Bil from 3.4Bil yesterday. Drying up of volume would suggest that sellers are running out of shares to sell already and the index could turn around back to heading up in the short term.

NIKL broke the previous high of 21.20, closing at 21.40 forming a new high despite of the weaker RSI reading(bearish divergence). I still haven't closed my position as it appears to me that it is in a strong uptrend. I am just expecting it to be one choppy ride.

Nickel is up since my last post(27000), approaching 28000 levels already. An up break at 28000 would probably send the contracts up to 28500 in the short term and hopefully, it could push the stock up in the short term.

SMC and AGI are looking attractive at current levels. Let's see how they do next week.

I am 50% cash so I would either put up a position in AGI or SMC. Or would it be better to put up a position in both issues. Or I could put up another position in NIKL for swing trading.

Good omens for the three are showing up!

Thank God there's 2 days to think over what I need to do by next week.

Here's something to watch over the weekend:

http://www.youtube.com/watch?v=CHUaQmexJFM&feature=player_embedded#

That's pretty much applicable to every tradable issue available.