Trading Signals

March 20, 2017

Megawide Construction Corp.
Bloomberg : MWIDE PM / Reuters: MWIDE.PS

Charts Speak Louder than Words

Analysis: MWIDE broke out as it rallied past previous highs, on big volume, before correcting a
bit and closing at PHP16.50.
Trading Plan: Buy at current prices to trade the breakout. Keep stops tight, just to be safe. Re-
sistance levels are at PHP16.80 and PHP17.00 while support is at PHP16.00.

Minutes of the Morning Meeting

Expect a quiet start for PH equities this week, as prices normalize from the aftermath of the FTSE re-
balancing. Failure to see a follow-through breach of the market's 7,350 to 7,400 resistance zone,
should lead to a continuation of its range and a test of its supports at 7,150 to 7,200 once again. US
stocks also closed little changed last Friday.

US ECO DATA:
*Consumer Sentiment: 97.6 in Mar. (vs. 97 est. & 96.3 in Feb).
*Oil Rig Count: +14 last week to 631.
*Gas Rig Count: +6 to 157.
*Total Rig Count: +21 to 789.

FirstMetroSec research is available through Bloomberg.

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PSEi Technical Analysis ANALYSIS:

SUPPORT: 7,100-7,150 RESISTANCE: 7,350-7,400

Expect the PSEi to continue testing its 7,350

(R1) to 7,400 (R2) resistance zone this week,
after closing just below it and reaching an in-
traday high at 7,417.76 last Friday.
The index would still need to successfully break
above this resistance zone (coupled with a pos-
itive MACD cross), in order to reverse into an
uptrend and test its higher resistance at 7,500.
Note that failure to break above its resistance
zone would lead to a continuation of its 7,150
to 7,400 range.

TRADING PLAN:

Those who bought the rebound may continue

trading the range if its resistances continue to
hold.
Trend followers on the other hand, are recom-
mended to buy if the market manages to
break out of its 7,400 resistance with a posi-
tive cross on the MACD.

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