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Belle Corporation (BEL) To Head Back North?

Belle Corporation, Bel philippine stocks, Willy Ocier, Ron Acoba, daily stock picks, stock market trading, hidden bullish divergence, fibonacci retracement

Willy Ocier-led Belle Corporation or BEL in the Philippine Stock Exchange was one of the top stories in the domestic stock market in 2010. It was actually a sleeper during the first half of last year. Imagine, it was only trading at around PHP 1.80 in July before it eventually made a move north. From August until the end of 2010, it rose from PHP 1.85 to PHP 4.60. It did not stop there as BEL continued to move higher in January 2011 and on January 19, it reached a high PHP 6.49. From then on, profit taking took over and the stock slid back to a low of PHP 4.92.

A lot of people are asking, “Will BEL soon get back on the bullish track?” I would say that given its present technical set-up, there’s a good chance that BEL would make a turn around and head back north. As you can see from its daily chart, BEL has weakened back to the psychological PHP 5.00 price level. If you notice, this mark also coincides with the 38.2% Fibonacci retracement level of the last up wave, making it a good level of support. In addition to that, the issue’s uptrend line is still around to keep it from falling further. Moreover, a hidden bullish divergence, where the price registers higher lows while the RSI makes lower lows, is also present. This suggests that traders and investors could soon pick up the stock. A rally from PHP 5.00, therefore, could send it back to its former high at PHP 6.49. A break below it, on the other hand, could push it down to the other Fibonacci retracements levels – PHP 4.50 or PHP 4.00.

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