Manila Electric Company or Meralco (stock symbol: MER) may have seen the bottom for now. The stock saw a surge of buying on Friday, putting it very close to a break of the 300 psychological level. Recall that the PSE memo released last February 24 laid out the recomposition of the PSE Index, and this saw MER replace MWC, effective tomorrow, March 17.
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The picture was quite different back in February, as MER traded to a new multi-month low on January 16 at 246, and price stayed close to it more than three weeks after my warning here.
The Detrended Price Oscillator recently traversed the zero level from the bottom, and seems poised for further gains.
If 300 yields to pressure quickly, the initial target is around 310-320. On the downside, MER should find support at 250-280.
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