The Ayala Corporation Breakout!

Hello stock traders! It's been a while since I last posted on Ayala Corporation or AC in the Philippine Stock Exchange. If you want to check my post three months ago, kindly check here. As you could see, it took 5 months for the Ayala Corporation stocks to setup the triangle formation that could trigger the break above the 355.00-357.50 peso 2-year resistance area. Fortunately, it did on September 2 which is just yesterday (indicated by the yellow circle). Right now, the Ayala stocks could further head up but could encounter some selling pressure at the 400.00 peso psychological area which I also consider a resistance. However, if the stocks move past above the 400.00 peso marker, the next resistance could be 422.50 pesos. On the downside, in case the stocks start to drop, it could bounce off the 355.00-357.50 peso resistance-turned-support. If it slips and slides below that area, the next support could be the 7-month uptrend.

Yesterday, the US reported a great news on their Pending Home Sales data as it turned out to be positive. Currently, they also reported a stability on the unemployment rate which triggered the Dow Jones Industrial Average and the other major indices to stay on the bullish territory, well at least for now. Since the US market's with the bulls right now, the Philippine market will most likely be as well on the coming Monday trading session. Good news for the blues!  Happy weekend guys, cheers!

Philippine Stocks: AC (Ayala Corporation) – May 30, 2010

Last time I talked about Ayala Corporation or AC as listed in the Philippine Stock Exchange, it was in the early stages of forming its trading range. Presently, it still in the trading within the said range although it looks like it is aiming to reach the rectangle’s resistance 357.5. However, the 122-point dip in the US market last trading session could likewise place some selling pressure on the stock. Still, if the price breaks above the current resistance, we could see the number head to the next resistance at 422.5. On the other hand, if the market doesn’t do well and the AC declines, the price could reach the 307.5 support or even at the psychological 300.00 price which is where the uptrend line that I drew passes.

PHILIPPINE STOCKS: AC (AYALA CORPORATION) – May 11, 2010

Ayala Corporation or AC as listed in the Philippine Stock Exchange broke out last March 30, 2010 from what looks to be a reverse head and shoulders formation (indicated by the 3 arcs: the middle arc is the head and the arcs beside it are the shoulders). However, it hasn’t fully climbed up as the resistance at 355 (greed dotted line) prevents it from doing so nor could it have really been a reverse head and shoulders formation. Now, we can see the Ayala Corporation stocks moving sideways in a 5-week trading range (indicated by the yellow lines) with the resistance at 357.5 and the support at 307.5. Once the trading range is broken then we might see the stock price move to another level.

PHILIPPINE STOCKS: AC (AYALA CORPORATION) 9-2-2008

Like ALI, AC is also possibly reversing from a downtrend to an uptrend by forming a reverse head and shoulders formation. A good entry for this is when the stock price breaks out of the neckline. 380 can possibly be reached in short time. Click image to enlarge!