Manila Water Company (stock symbol: MWC) shrugged off its recent exclusion from the PSEi and launched to a new (4-month) high a day after March 17, the official effective date of the latest PSEi recomposition (MWC was replaced by MER). The stock erased most of that day’s gain in the following days, however.
The 23-24 area is critical (MWC survived the previous test at 23) and therefore must hold to prevent consolidation and possible resumption of bearish momentum. Meanwhile, beyond 26, there is a gap and resistance at 30. The incomplete ascending trendline which crosses the mid-23s and could act as support too.
If bulls can keep the momentum on their side and ideally close the week at 25 or higher, it would be MWC’s third consecutive month with a bullish close (and third monthly higher high).
The TRIX index is now neutral above the zero level but has stayed there for one month now.