It has been a profitable year for us traders. The PSEi bottomed at 1684.75 and from there it went up to a high of 3130.43, 766.31 points short of the 2007 high at 3896.74. To sustain this bullish trend, the PSEi and other indices must correct or consolidate which I think will be the case in the first two quarters of 2010. Though it’s a possibility that the PSEi might go up to 3425 (78.6%) level but I don’t think it would go beyond the 2007 high. The index must correct before it could do so.

As I see that most stocks in the PSE will correct or consolidate in the first two quarters of 2010, I see stocks that will shine in the 1st and 2nd quarters of 2010.
ANI (AgriNurture, Inc.)
Added in my hit list last December 21st, there’s nothing new in the chart except the price is nearer the resistance line (red line). Will it break the resistance line in the first trading week of 2010? If it does, it is important that the breakout is accompanied by volume. As of now, the buy price is still undetermined. Stop loss should be at 23.75, targets are at 31, 35 and 40.

LC (Lepanto Mining Corporation)
LC closed strong in 2009, probably due to end of the year window dressing. Nevertheless, the chart looks good and I still recommend a buy. In addition to my analysis posted in the hit list, I see a symmetrical triangle pattern suggesting a target of 0.45 which is 78.6% fib retracement. Buy price is at 0.25 or better, stop loss should be at 0.21 and take profit targets are 0.39 and 0.45.

MA (Manila Mining Corporation)
MA’s chart actually looks similar to LC’s. There’s great potential for this stock, just take a look the volume; it’s pretty wild. Buy price is between 0.023 and 0.025, stop loss at 0.02 and target is at 0.04 which is 224% fib extension. Immediate resistance is between 0.027 and 0.03. If you bought at a lower price, you may take profits between that level but if MA go beyond 0.03, I don’t think you can get MA at a cheaper price.

There are stocks that are in my watch list that I’m yet to do a detailed analysis. They are:
AC
CMT
GLO
VLL
That’s it for now. Good luck to you and may we have a profitable 2010!