Mukhang nag rounding bottom pala ang VUL from 2000 - 2006. Sayang hindi ko nasakyan when it broke out last December.

Bonner also pointed out its forming a symmetrical tri. See thread on Ask Bonner.

Master Bonner - you think puwede pa sakyan ito since hindi pa nahihit yong rounding bottom TP of 1.88 and its now only at P1.54? Or is it better to wait if it breaks out of the sym triangle na lang?

Hmmm... here I go again, getting tempted on trading 3rd liners. Basura stock ba to??? :roll:

I would trade the triangle. Huli na ako for the rounding bottom. Besides it may take VUL to reach that target of the bottom within 3 yrs pa kung 6 yrs ang formation.

I'm not that patient.

Bonner, may gusto lang ako i-clarify. In the attached VUL chart, there is a symmetrical triangle. I've noticed that the MACD is pointing down, while the price action is trending up. My question is:

1. Does this confirm a bearish divergence and that the symmetrical triangle is likely to breakdown? or

2. Is it too early to say that there is a bearish divergence because the 2nd peak of the MACD line has not been formed yet ( kahit pa MACD is definitely pointing down already )??

May I also ask - can the RSI be used to catch divergences too, ala MACD? i.e. RSI going down and prices going up, will indicate bearish divergence?

Thanks a lot.

Let's have a refresher on divergences.

Prices and the oscillators move away from each other. You get a bullish divergence when prices make lower lows and the oscillator (either MACD or RSI or both) make higher lows. You get a bearish divergence when prices make higher highs but oscillator makes lower highs.

We know what's coming, we just have to prepare for it. As like patterns, I consider the divergence to be confirmed only when prices start going in the direction of the oscillator. By such time, a trendline would've been reversed.

Oh, now I get it. :idea:

So hindi pala ito bearish divergence bec. the prices are not making higher highs. Dun ko kasi tiningnan sa support line to determine the trendline of the prices, dapat pala sa resistance line ako titingin if I'm checking for a bearish divergence.

Thanks for the clarification.

VUL had its second largest volume of trade today. it's average price at 1.21. a clear reversal of a down trend.

PD: i bought a lot today.