JG Summit Holdings or JGS in the Philippine Stock Exchange for a while had moved past its previous high at PHP 27.50. However, sellers are quick to bring it back towards PHP 27.00. Nonetheless, things still look rosy for JGS at least from a technical perspective at this point in time.

2011 is a positive year so far for JGS as it has been able to push its price up from PHP 19.58 during the start of January to a high of PHP 28.30 couple of days ago. Still, it appears that it has some more leg to move higher given its present technical set-up. As you can see from its daily chart above, JGS has formed an inverted head and shoulders continuation pattern. A successful break above this pattern’s neckline could send it to its minimum target price of PHP 35.00 (gauged by projecting the height of the formation from the possible breakout point. Last week, though, it attempted to move past the PHP 27.50 high but it was not able to stay above it for so long. The question now is, will we see such another attempt? Possible.

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Another John Gokongwei – led company, namely Universal Robina Corporation or URC in the Philippine Stock Exchange has been making some headway these past couple of days. Now, will it be able to regain its form and regain its previous high that it had back in 2010?

As you can see from its daily chart above, the shares of URC have been on snooze mode since the start of December 2010. However, it appears that this sleeping giant will once again crawl back in the trading scene. You see, URC has been consolidating within a cup and handle pattern for almost 5 months now. Just last Friday, though, it seems that it has already broken above the pattern’s neckline. Or did it really do so? Well, while it looks that it did move past the neckline, there was no significant volume to support the move. Given this and the apparent resistance at the nearby PHP 40.00 level, URC could still face some selling pressure at present levels. But if it manages to move past PHP 40.00 and its volume surges as well, then there’s a big chance that it could once again aim for PHP 45.00 or even higher. A failure to do so, on the one hand, could place URC back in hibernation.

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Philex Mining Corporation (PX) was one of the main guys in today’s top gainers list with a significant amount of volume traded along with Lepanto Consolidated Mining Corporation (LC) and Manila Mining Corporation (MA). These 3 companies were suspended in the Philippine Stock Exchange yesterday because of the agreement for the exploration and joint development of the “Kalayaan” mining site but resumed trading a while ago. The PX stocks dipped by more than 3% in the first few minutes right after the suspension was lifted when weak hands exited. Fortunately, as the market came to an end, it recovered and even rose by 6.5% to PHP19.72.

Chart-wise, PX had awesome technical setups when it was still around PHP14.00 like the 7-month symmetrical triangle when it was still consolidating (kindly check here). At the same time, this happens to be the “handle” of the 1-year cup and handle pattern. Within a month, it flew. It formed a bullish pennant (kindly check here) then broke out once more all the way to its current price of PHP19.72. Since my PHP19.00 target price for the symmetrical triangle has been achieved earlier, our next target could be PHP23.00 which I got by adding the size of the “cup” to the breakout point. But before it reaches that level, it first needs to clear out the PHP20.00 all-time high where some selling pressure could be experienced. On the downside, the immediate support could be the 1-month uptrend. If that breaks, the next support could be the 7-month uptrend.

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WTI crude oil suffered an unprecedented fall last week when it was dropped like it was hot from a high of $114.81 per barrel to a low of $94.65 in a matter of days. Since then oil prices have rebounded again. However, it appears that oil could bound for another dip in the near term.

As you can see from its 4-hour chart above, WTI crude oil looks to have formed a rising wedge pattern in its recent run-up. Technicians consider this this pattern as bearish since it generally just indicate a temporary rally in prices following a deeper descent. Notice also that is is already nearing the 50% Fibonacci retracement level, using its last high at $114.81 and the low of $94.65 as swing points. Additionally, the presence of a hidden bearish divergence, where the price makes lower highs and at the same time its stochastics register higher highs, suggests of a possible downbeat turnaround soon. Moreover, crude oil’s condition appears to be already overbought as indicated in its stochastics. A breakdown, therefore, from the rising wedge pattern could sent it back to its recent low.

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The euro got hammered by the us dollar during the last 4 days when it slipped sharply from 1.4940 last May 4 to a low of 1.4254 yesterday. However, it appears that the euro bulls will be looking to rebound from its recent losses shortly.

The EURUSD’s current price set-up is one of my favorites to execute. Like I said, the fiber fell to 1.4254 a couple of days after reaching a high of 1.4940 ( a slide of almost 900 pips!). However, if you look at its daily chart, the euro’s sell-off looks to be over extended already. Notice that the fiber’s fall was halted by its previous high at 1.4282. Moreover, the appearance of a hidden bullish divergence, where the price registers higher lows and the stochastics mark lower lows, suggest of a possible turnaround to back north.

Playing a hidden divergence set-up like this works well in my case since it is a continuation signal. As you know, the trend is your friend and riding one is relatively safer than catching a reversal. In this instance, the possibility of this trade panning out right for me gets higher because of the significant support at its previous high. So as for me, I would want to place a long order at EURUSD’s present level down to 1.4200, place my stop loss trigger below 1.4200 and my target price at around 1.4800.

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JG Summit Holdings, Inc or JGS in the Philippine Stock Exchange could be on the verge of knocking out its all-time high at PHP27.50 just like Manny Pacquiao‘s attempt on Shane Mosley and I’ll tell you why shortly. The JGS stocks racked up some hefty gains today closing the trading session up by 6.1% to PHP27.15. For those who do not know, this holdings company majority owned by the Gokongwei family, is invested in air transportation, banking, food manufacturing, hotels, petrochemicals, power generation, publishing, real estate and property development, and telecommunications businesses. Also, its stock price was at PHP1.86 2 years ago so imagine how much profit you would have made. Most of us missed that but there’s still a chance for a few profits given the current chart setup.

In what I see, there could be a 7-month inverted head and shoulders forming and a break above the neckline could propel the stocks to my target price of PHP34.00. I got this by adding the size of the head to the possible breakout point. By the looks of it, we could expect the breakout soon as the recent price movement looks aggressive enough to clear out the neckline. If you notice, the MACD is moving in the positive territory, the stocks are above the 50, 100 and 200-day moving averages and the sudden increase in trading volume the past few days signal the Chicago Bulls are back. However, in any case the JGS stocks drop, the immediate downside could be the 1-month uptrend. If that breaks, the next support could be the PHP24.00 level. If I would have entered at the last traded price, my cut loss will be placed below the right shoulder (PHP24.00).

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