Fibonacci Analysis: The Long Overdue Bull Run

Apparently, the much awaited uptrend is already long overdue. Bad news comes one after another which significantly affects PHISIX. Nevertheless, the index has shown signs of life as it remained in the consolidation stage despite the negative turn of events. Quite an achievement so to speak.

I ran a Fibonacci analysis on some stocks (including PHISIX) and found some interesting set ups. The chart below shows that PHISIX is just hovering above 23.6% of Fibonacci which is at 3800. This is applicable to those who are investing in mutual funds and UITFs since these financial entities are strongly affected by the stock market. As soon as PHISIX hits 3800 and bounces back up, it's a good entry point.

The charts below show some good stocks positions for several companies.

PCOR: Many are scared of PCOR because of the dip that it took for the last two months. The chart below shows that PCOR went up as it hit the 50% mark. 50% in Fib is quite strong (in my opinion). It is a little premature to take PCOR but this is definitely worth the look.

JGS: JGS hit the 23.6% mark at 21.5 and went back up. Confirmation is needed as usual to minimize the risk. The chart also shows that 21.5 is a resistance that might turn into a support if JGS would bounce back up. Other than Fibonacci, JGS is also resting on its uptrend support.

JFC: JFC is nearing to hit the 23.6% resistance at 85. If JFC will break it, it will indicate some strong bullish momentum. On a short term perspective, JFC is consolidating. It's undecided as to where to go so again, waiting for a confirmation would be wise before coming up with a decision.

EDC: EDC hit 23.6% at P6. Considering that this has some bullish momentum, this would most likely bounce back up. EDC got some good reviews for the year so I think that at P6, it is a good buy.

AC: Just like JFC, AC is up to challenge the 23.6% resistance at 360. AC was hovering around the 355-360 mark recently and should it get past 360, it will signal some strong buying.

Fibonacci Retracements only suggest where the price would possibly go next but doesn't exactly tell where it would head. It still needs confirmation of price action, other indicators, and fundamentals to further boost its reliability. Nevertheless, I remain optimistic on these stocks for 2011 and the bulls are just waiting at the corner.

JFC: The Bee is Buzzing

After reaching the P100 plateau by late October of 2010, JFC (Jollibee) has somewhat gone sour and went down. From November 1, 2010 until early February of 2011, JFC went down from P90 to as low as P70, about 23% decrease in value.

JFC isn't getting much attention lately but I think that JFC has great potential than it's price action dictates. The chart below shows that JFC is potentially starting an upward momentum. The price picked up since it reached P70 and in nearly a week, it is hovering around the P75 mark. MACD and RSI are also positive. JFC's MACD signifies that an uptrend is somewhere ahead and it's RSI shows that it is strengthening both marking that it will go up sooner or later.

The graph below shows that JFC is approaching the 38.2% mark of Fibonacci. Theoretically, prices changes direction when it hits the 38.2%, 50%, and 61.8% marks of Fibonacci. 23.8% and 76.4% are areas worth looking at but not as strong as those 3.

JFC's behavior follows Fibonacci religiously. It went down when it hit the 61.8% mark in 2006 before bouncing back up when it hit the 76.4% mark later in 2006. It went down again after hitting the 50% mark in 2007 before bouncing back up after hitting the 76.4% once again in mid-2008. 38.2% could be a potential support if JFc would continue to follow Fibonacci.

JFC found a long term support at P30 but after surging past it's resistance at around P55, it might turn such resistance into support.

If worse comes to worse and JFC won't bounce back at 38.2%, it could go further down to P55 which is it's next support (shown on the chart below).

Fundamentally, JFC hasn't been a talk of the town lately. However, as soon as their Ti Amo coffee shops will start to materialize, expect JFC to take some serious momentum going up. The acquisition of Mang Inasal spurred the bee up in 2010, Ti Amo might do the same as well.

JFC still lacks market sentiment as of the moment but as soon as the fundamentals will start to come in, it will further strengthen it's technicals and there's no reason for it not to go up.

JFC went up from a little less than P10 in 2001 to as high as P100 in near end of 2010, some 900% growth in nearly a decade. From mid-2008, it went up from about P32 to a high of P100, more than 200% growth in just a year and a half.

It think that JFC still has a lot of room to grow given it's current price. P110-P120 range is doable before 2011 ends as long as fundamentals and market sentiment could back it up.