After a long wait, if you can call 6 months long, there is finally a stock in the Philippine Stock Exchange that has shown some signs of probable reversal of fortunes.
Megaworld (MEG) is in a sector battered due to problems in their sector owing more to the problematic housing sector in the US. Talk about colonial mentality. Anyway, from what we can see in the chart, after peaking in October, it has been downhill since December 2007. The number of investors in this stock has multiplied. By investors, we mean people who bought high and never sold because it's just too damn painful.
The good news that we see here is that MEG has gone sideways for the past 2 months showing us what looks like a double bottom. It's a little early to call it a bottom anyway, but just in case it is, I've already set my neckline for MEG at 2.65. I'm looking at 3.20 as a minimum target should this breakout of the neckline wiht significant volume.
Even if it's a little early to call the consolidation a bottom, the MACD has been showing me a positive signal with its bullish divergence. So maybe it's just a matter of time before we see MEG flying higher than current levels.
Of course, this is all speculation for now. Until we get a confirmation of a reversal, which is the breaking of the neckline, I'm not calling a buy on MEG.
So have a little more patience my friend. That's your best asset for the moment.