Monday, October 18, 2010

Oriental Peninsula Resources Group To Make Another Move?

Hello traders! My Philippine stock pick for the week is Oriental Peninsula Resources Group, Inc. or ORE as listed in the Philippine Stock Exchange. Oriental Peninsula is a
Philippines-based holding company which is involved in mining activities. By the way, I had a post on this last May when the price was still around the 2-peso area (here’s the link). Anyway, in my technical analysis, there is currently a small symmetrical triangle forming in the ORE stock chart. However, I’m not sure if the formation is already set for a move since the pattern still looks premature and we will only find out if the breakout/breakdown occurs. Symmetrical triangles are generally neutral in terms of which direction it would head. However, as the triangle we see in ORE is coming from a 7-month uptrend, the pattern is most likely bullish and the stocks could breakout. If a break above the triangle’s resistance takes place, the next marker could be 3.35 pesos. If 3.35 pesos gets taken out once again, there could be some selling pressure at the next resistance at the 3.40 peso all-time high dating back from December of 2007. Then after that could be the 4.00 peso psychological level. On the downside, if the the symmetrical triangle breaks down, the immediate support could be the 8-month uptrend. If the stocks slip and drop below the uptrend, the next support could be the 3.00 peso price mark. Above all, as long as the uptrend remains intact, I’d stay bullish on this.

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