• Drink and be MERry!

    Drink and be MERry!

    Meralco went under the spotlight when it was removed from the MSCI Philippines Index last November 29. To our surprise, MER even turned out to be positive from the deletion announcement 3 weeks ago to its actual removal recently. This shows, at least, that there is a lot of interest in the stock. Just how much could the potential for Meralco? For a big utility company like MER, we were surprised to see that just 4 years ago it was just trading at the Php50.0 level. From then on it zoomed to a high of Php300 in less than a year before consolidating within what appears to be an ascending triangle pattern. Since reaching the said high for the first time, it has been consolidating for about three years now. Should MER move past the Php300 resistance, a powerful move higher can be expected given the time it took to ‘rest.’ And based on the height of the pattern, a break above Php300 may send it all the way up to Php450. On the other hand, a break below Php250 can send MER back down to at least Php200. However the last scenario may be unlikely given the unfilled demand of more than 3 million shares for MER at Php262 last November 29.

    Share on FacebookTweet about this on TwitterShare on Google+Share on LinkedInShare on TumblrPin on PinterestShare on StumbleUponShare on RedditDigg thisBuffer this pageFlattr the authorEmail this to someone