News / Philippine Stock Market
It’s been a long time since we saw anything interesting in PNB. The bank is already in the midst of a merger with El Capitan’s original bank, Allied Bank. Due to that, some people speculated on the stock’s future. Like most other stocks in the market, this also suffered through the bear market.
As we see in the chart, PNB has been in a downtrend since the start of the year. It rallied in May only to fall again to its low in July. But it quickly picked itself up and came rampaging back above the 65 & 130-day moving averages.
We see that it has formed a possible double bottom formation (it could even be a triple bottom or an inverted head & shoulders if it should prolong its consolidation). Whatever it’s doing, it seems like a reversal is in the offing. Signs of a reversal include the formation of what looks like a reversal pattern in the making. The second would be the bullish divergence in the MACD. Take a look at how it behaved since February. The price made lower lows, but the MACD made higher lows. We should be alerted that this is a probable bullish move in the making.
Assuming that the neckline right now is placed at its recent high of 38.50, the initial upside target I see for PNB would be 53.50. In these uncertain times, I don’t think anyone would want to argue with a possible 38% return.
Recommendation: Wait for a break of 38.50 with volume before buying. 
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