Post Trade Analysis: MER and GLO

Manila Electric Company (MER)



Analysis:

• Early trend signal had happened where the 4-Day EMA crosses above the 9-Day EMA.
• +DI crosses over -DI at 12/10/08. Extreme point rule breached at 12/15 when the price closed at 59.
• We can see that a higher high was established at 02/03/09.
• The 3 EMA are in bullish allignment.
• The ADX line is also rising
• The gap between the +DI and -DI had widened
• The RSI consolidation at the 58 level was breached at 02/03/09.

Trade:

• Purchased the stock at 62.
• Sell at 7-10% of purchase price for a loosing trade.

Globe Telecom Inc (GLO)

Analysis:

• 4-Day EMA crossess above 9-Day EMA at 1/28/09. This was confirmed when the 9-Day crosses above the 20-day EMA at 1/29/2009.
• +DI crossed above the -DI at 1/27/2009. Extreme point of 820 was breached at 1/29/2009.
• The 3 EMA are in bullish allignment
• RSI is rising.

Trade:

• Purchased the stock at 842.
• Sell at 7-10% of purchase price for a loosing trade.

Updates:

• 02/11 - MER closed at 78 and it is still trending. Moving my trailing stop at 75. This will be the turning point if this will breach or will consolidate again on the 80 level.
• 02/10 - MER target price of 75 was hit. Stock closed at 75 and looks poised on testing its 77-80 level. RSI is at 80 and very overbought already, however the ADX is still rising plus the +DI is still trending up and widening its gap with the -DI. Decided to hold this for a while. Moving my trailing stop at previous day close at 73.5
• 02/09 - MER target price of 72 was hit. Stock closed at 73.5 and will be retesting 75-77 levels. Mvoing the trailing stop on previous day close at 69.5.
• 02/07 - MER target price of 70 was reached although the stock closed at 69.5. The stock is already overbought and many who has positions on this will probably take their profits now. However, my prediction on this one is probably it will climb towards its 72-77 level and will retest again on 80 level where the stock consolidated for a year. I'll be selling some of my position on Monday to lock some profits. For my remaining position, I'll be moving my trailing stop at previous day's close of 65.5
• 02/05 - Sold all my GLO positions as it formed a bearish engulfing pattern yesterday.
• 02/05 - MER target price of 63.5 was reached. Today's close was 65.5. Moving my stop at previous day's close at 63.