MEG PAX MPI "Analysis"

By Andrei of www.traderspizza.com

MEG
Today’s MEG level of performance is very dismal despite the 221 jump in DOW. The opening was strong but failed to catapult to 1.20.
For MEG to really go up, we need foreign buying to show up in the early goings. MEG has many shares. It can not be eaten up all by locals particularly tsupiteros alone.
I suspect that foreign accumulation is not done yet. As you saw yesterday, Foreign came in late and they bought at 1.02 – 1.08 range. They were the biggest buyers yesterday at the high end of the range.
So what shall we do? We have to really be patient. My expectation is MEG should be more or less 1.50 within the month.
MPI
This stock should belong to your “ hot stock” because it has very small float and behaves like PAX. Yesterday, I got a hefty 6 digit profit from it. But I have to cut-loss what I bought back at 6.70 to 6.50 when momentum decelerated.
It is strategic to accumulate again below 6.0 or better close to 5.50. Then wait for it to erupt like PAX. Under MVP, MPI should be teeming with good fundamentals in the long term.
My expectation is this will go 8.0 pesos within this month.
PAX
We have said a lot about PAX already. The rise of PAX today simply confirms that something is good to come out from its ASM. We still don’t know anything about it but it isn’t really necessary.
However, the flipside of this price action occurring almost near the ASM is a sell on news scenario when ASM details comes out.
Unlike MPI’s case, there was no price surge 1-3 days prior to its ASM. The surge came after the ASM details were announced.
We have to take this possibility to have our action plans calibrated.
In the meantime, we will enjoy the trek to higher highs. It is even possible that 5.0 peso is reached before ASM considering the very wide price action range it made from its latest 2 rallies.
When this one closed at 2.20 a week ago. It gapped up to 2.34 at its opening the next day. It stayed sideways at 2.55-2.65 level. But bulls took command and it went higher up to 3.10 and then closed at 2.85.
From 2.20 to 3.10, that was a 41% ascent intraday. And from 2.20 to 2.85 closing, that is 30% ascent to closing.
There were a lot mistakes committed at that time.
1. Some sold at the opening at 2.34-2.40 only to curse themselves when it went up further to 2.55-2.65.
2. Then 2.55-2.65 lasted and moved sideways for about an hour more or less. Many sold at this level fearing a retracement will occur. But they too had to scratch their head when PAX resumed its climb all the way up to 3.10.
3. At 3.0 -3.10, nobody sold because we were in the thinking that this will go to ceiling or 3.30. I wanted to be the first buyer at the ceiling.
Now why are we analyzing the previous data?
It’s because we don’t want to sell too early or too late. Aside from that, PAX is not Pivot Calculations-friendly. In other words, the Resistances we compute for the day are just breached through in a breeze.
So at what % level shall we see PAX tomorrow ? This is a very tricky question.
Anyway, these are the possible resistances tomorrow 3.20, 3.40, 3.75. If you wish to sell, make this as your guide.
The 3.20 will be an easy hit tomorrow. What we will watch out for is the 3.30. This was its previous high. If this is breached tomorrow, it will go to 3.50. If 3.50 is breached, we’ll say hello to 3.75.
We’ll be squeezing our brain juices on how to project the possible moves of PAX tomorrow. This is all for now.