Possible Superstars in the Properties Sector

The PSE Properties Sector has been moving sideways between the 1400 and 1600 levels for the past 10 months. Now that such sector is nearing 1600 once again, there is a good chance that such resistance will be broken. In order to do that, stocks in the properties sector must do well, just like how the mining and oil sector is doing in line with the continuous rise in the oil price.

Here are two technically rich stocks that might propel the properties sector to break the 1600 mark and possible build some momentum and rise significantly.

Ayala Land Inc. (ALI)

The chart below shows that ALI has just broken out its 10 month resistance. With its RSI suggesting that it is still far from being overbought and the fundamentals that the properties sector has got recently, it won't be surprising to see ALI go up.

If ALI's price action moves up, it may encounter resistances at 17, 17.50, and around 18.20. With its current price at 16.58, ALI presents some conservative yet possibly less risky gains.

Belle Corporation (BEL)

Whether BEL behaves extraordinarily or not, its chart still suggests a huge upside. For the past 5 1/2 months, BEL has been moving sideways inside the P4-P6 channel. With its current price at P4.70, it may ideally have some P1.30 upside or 21.67% gain potential as far as the channel is concerned. The chart below suggests that BEL has a huge gap to fill from P4.70 to P6.

BEL has been dormant lately moving sideways just between the 4.68 to 4.75 channel for the past month. However, with the huge potential and promise that the properties sector is showing, BEL may wake up real soon. Its RSI suggests that it is way too far from overbought and in fact nearing oversold thus the bulls may just push this stock up soon. BEL however might not be good for short term play but as far as potential is concerned, this is a good stock.

ALI and BEL are just a few of the many stocks that show good potential in the properties sector. With the market still focused on the mining and oil industry and with mixed emotions because of the "ghost month", it may take some time for these two to move. The properties sector is already starting to build some momentum with the fundamentals that the Philippine market is getting so this sector may have next wonder worker especially now that the mining and oil sector is getting too overbought.

BEL: Double Bottom?

The chart below shows that BEL (Belle Corporation) is in a potential double bottom. BEL was one of the many companies that surged late in 2010 as it went up from a little below P2.50 last November of 2010 to as high as P6.30 in mid January of 2011 before starting to sink to less than P5 in February.

However as shown in the chart, BEL gained some momentum at around P4.70ish, went back up to reach near P5.20 before going back down to around P4.70. Since then, BEL gradually picked up some uptrend momentum.

What's interesting in the chart is that the P4.70 level was an uptrend resistance before the double bottom (hopefully) formed. Around January 6, 2011, BEL hit the P4.70 level before bouncing back up for one more run before losing some strength.

Should the double bottom hold, BEL could continue its uptrend run. The good catch? BEL is just hovering around the P5 mark, quite cheap.

I'm optimistic about BEL (I'm always optimistic anyway) but a confirmation would be wise. The double bottom might not hold true. Better be safe than sorry.