Monthly Trending Stock Picks – July 2017

STOCK PICKS

Union Bank of the Philippines, Inc. (UBP)

Union Bank of the Philippines

UBP daily chart

Union Bank of the Philippines

Signals

Union Bank of the Philippines

Support/Resistance levels

  • UBP is moving on a very healthy uptrend since October of 2015 and showing no signs of retreating. It already gained by around +70% since it bullish reversal almost two years ago. We believe that the stock might still continue to rise and possibly reach its previous highs. Moving averages are pointing upward.
  • QuantDS data (table above) are showing signals that back up the technical indications. The data generate a Breakout Buy recommendation with a high certainty of 58% coupled a Buy Stop (buy above resistance breakout) alert. However, the Status column shows the price is near to its 52-week high, so it's better to mind also the Reversal signal in the Filters column.
  • 50-day MA (moving average) acts as dynamic support so it's advisable to those who want to ride the uptrend to wait for the price to move near it.
  • Brief Funda - UBP is one of the top performing banks in terms of both asset and equity returns prior to 2014.

SM Investments Corporation (SM)

SM

SM daily chart

SM

Signals

SM

Support/Resistance Levels

  • SM is on the uptrend for almost three months now which started after it breached above 200-day MA last April, ending its sideways movement. Bullish continuation is a possibility as short term MAs manages to stay above longer term MAs.
  • QuantDS data generates a Momentum (strong upward momentum) in the Filters column and a Buy Stop (buy above resistance breakout) alert BUT the Status column shows NTR (Near Top Resistance) coupled by a High-Risk Buy recommendation with 50% certainty. With these signals, QuantDS is neither bullish nor bearish for SM.
  • We advise traders, especially SM holders, to carefully monitor the stock and check the prices in the Support/Resistance levels (table above).
  • Brief Funda - SM Investments indirectly owns about 30 percent of 2GO. It’s part of portfolio investments amassed to diversify beyond core businesses that include BDO Unibank Inc., the biggest Philippine lender by assets, and China Banking Corp. SM Investments’ two other major units are SM Prime, the nation’s largest shopping mall operator, and SM Retail Inc., the biggest Philippine retailer with 2,303 outlets (Bloomberg).

Philippine Business Bank (PBB)

Philippine Business Bank

PBB daily chart

PBB

Signals

PBB

Support/Resistance Levels

  • We have another banking stock in our July monthly picks, and it's PBB. After a long 3-year downward movement since mid-July 2014, the stock price finally broke and stayed above the 200-day MA. With that, we can consider PBB has already reversed from the downtrend and expect to continue moving upward.
  • QuantDS data signals are bullish for PBB. Low-Risk Buy is generated with a high certainty of 57% and coupled by a Buy Stop (buy above resistance breakout) alert.
  • The price is currently at the support level. We advise traders who want to buy to monitor price action before accumulating. Check for support/resistance levels in the table above.
  • Brief Funda - As of December last year, PBB is still limited to only 3 segments (corporate, consumer & treasury). The first 2 of which is already considered saturated markets due to the presence of the top 3 banks (BDO, BPI, and MBT).

Philippine Estates Corporation (PHES)

Philippine Estates

PHES daily chart

Philippine Estates

Signals

Philippine Estates

Support/Resistance levels

  • PHES started moving upward after the spike last February 6 when the stock closed by more than +40% from the previous day. The price moved above the 200-day MA and forming higher lows with 50-day MA as support.
  • Although the price is close to its Trigger, a High-Risk Buy recommendation with a high certainty percentage of 56% is also shown in the QuantDS data above. A Reversal signal is also present in the Filters column. PHES holders should always monitor the stock as it may move against your favor anytime.
  • Check support/resistance levels in the 2nd table above and use them as your guide in managing your trades. We advise those planning to buy PHES to buy only on resistance levels breakout.

Criteria

Chart

  • Upward Trend (with higher highs and higher lows).
  • Price above 200-day SMA.
  • The price touched the support (trend line/50-day SMA/20-day SMA) at least twice.

QuantDS PSE Data

  • Price is 0 to 1 or more days above Trigger Price.
  • Stock Filter: In Momentum or Reversal.
  • Recommended Action:
    • Breakout Buy, Trigger Buy, Low-Risk Buy, and Buy @ Uptrend Support with High Percent Certainty.
    • High Risk Buy or Trigger Sell with Low Percent Certainty.

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