BPC (Chart: Daily Resistance: 3.85/ 4.20/ 4.85 Support: 3.25)
BPC displayed a divergence of RSI movement against price. Price has formed a lower low and RSI formed a higher low. The MACD is also showing a slight divergence. There is also an inverse head and shoulders formation in the charts of BPC and the volume is confirming the formation. A significant characteristic of an inverse h&s is that volume tends to diminish from the left shoulder to the head. And volume has to increase during rally after the formation of the head. These characteristics are noticeable in the BPC chart which strongly confirms the formation. The break out price level would be around 3.80-390. The critical part for this formation to be valid is that the volume on breakout should be large. Coming from the bottom, it needs to have momentum for it to be able to propel itself to the target price of around 5.0. If the breakout does happen, expect that the support line (former resistance line) will be tested.
Search Google
Custom Search
Sunday, September 16, 2007
StockWatch (Sept 17-21, 2007): BPC
Subscribe to:
Post Comments (Atom)
3 comments:
hi sir:
bpc price movement is hinged to mer's. does this mean that mer has to move first before bpc?
thanks.
by the way, thank you very much for the posts... i've been viewing your posts for months... they are informative and they've been a big help for my portfolio... i am not a technical trader though but your posts do help a lot for my entry price.
god bless..
hi simulator916!
Thanks for visiting my blog! =) I'm glad that somehow my posts were of help to you.
To answer your question, MER partially affects BPC. BPC has investments in other sectors as well. Listed companies like FPH, FGEN, ABS, as well as other non-listed companies like Skycable, Rockwell Land are some of the other companies which contributes to the balance sheet of BPC. Definitely, if MER posts good earnings, it would have an effect in BPC's price. But sometimes MER's good earnings is not enough to move BPC's price. There could be instances where the other companies under BPC are posting bad earnings, which just cancels out the good earning's of MER. It may also be that BPC moves because of good earnings from other companies under BPC.
As I have been giving examples of the relationship of good earnings to the stock's price, the stock's movement is not solely dependent on it. BPC's stock may still move due to other reasons, such as the prospective profitable projects, etc. So BPC's price (just like any other stock) basically moves due to the people's perception of its worth.
Post a Comment