Saturday, 14 July 2007

PSE Stock Picks for July 16

Hi fellow traders, it's time once again for our fearless forecasts! Let's start off with a safe pick.

MBT is one of the most liquid bank issues listed in the PSE. Unfortunately, they also move very slowly. Despite it being a normally slow mover, it has broken out of a symmetrical triangle and is now consolidating inside a smaller symmetrical triangle. It is currently knocking at heaven's door at 73.50. On breakout at 74, I expect an upside target of 81 for MBT.

Next up is one of the speculative plays. I know everyone wants the PWR.

"It's gettin', it's gettin', it's gettin' kinda hectic..." so the song goes.

After a long consolidation, PWR broke out last Wednesday and volume was significant. Thursday continued the run and it backed off the high on Friday. I immediately saw this has become a candidate for a very short play as it is now in the midst of creating a pennant. I'm expecting PWR to consolidate for one more day before breaking out giving me a resistance of 0.55. Therefore, breakout price is 0.56, with an upside target of 0.81.

When it does breakout, "I will attack and you don't want that."

I'll have this PWR...

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