ABA - Potential Short Term Trading Buy

Abacus Consolidated Resources (ticker: ABA) closed at Php 0.79/share today, Jan. 31, 2012, up by 5.33% from it's previous close at Php 0.76. It bounced from it's 3 months downtrend support at 0.75 bringing it with a potential upside of 14% or 0.12/ share if it hits its resistance at 0.87 (target price taken from the projected resistance level of the preceding 3 month lowering top trend). Based on it's current momentum, the target price could be hit within the next month. Watch out for the MACD-line-crossover to confirm the short term reversal.

With the stock in the oversold territory, there is a potential trading buy at 0.76-0.77 with a sell stop loss order at 0.74. Furthermore, given today's substantial gain, we can expect the price to drop slightly tomorrow. This may make it a good initial entry point for aggressive traders.

Disclosure:
I have ABA in my portfolio.

To Trade or to Invest? - Philippine Stock Exchange, Inc. (PSE)

 Timing is everything - sort of. The Philippine Stock Exchange, Inc. (ticker: PSE) broke out to as high as Php 245 a share before closing at Php 237, a 3.33% gain from it's previous close at Php 229.60. For technicians, the breakout could be attributed to the symmetrical triangle formation illustrated above. In addition to the technical aspect of the stock, the market in general - except for the industrial sector - closed in the green with 100 advancers, 54 decliners, and 41 neutral-"ers". The Philippine market traded on a positive note responding to the bull run in the US markets with the DOW up by 337.32 (2.87%) in a single day. Following this logic, we could also say that PSE's price increase is attributed to the US market. This is why I love the eccentricities of the stock market - given a sound explanation, anything can be attributed with anything. 

Anyways...

I've spotted PSE's  symmetrical triangle formation two days ago but didn't expect it to break out (or break down) anytime soon, less alone two days later. Even though I love breakouts, I usually like taking my chances before a potential breakout may occur. Therefore, should you intend in entering into a position with PSE,  be cautious because a symmetrical triangle breakout is susceptible for it to return to the previous support or resistance line that it just broke through. Hence, make sure to watch for this level to hold.

On the other hand, if you are looking to INVEST in (the) PSE, let me be your devil's advocate and give you a couple of speculative advice.

Invest in PSE because: