Chart of the Week - PNOC Energy Dev't Corp.

EDC Monthly Chart - Continuing to Trend Up but Approaching its All-time High of 6.20

EDC Daily Chart - Continuing to Trend Up but Hesitating at the 5.20 Level, Volume Spike is Bullish or Bearish? g

Short-term Traders/Tsupiteros:	Medium-term/Position Traders:
Support - 4.75	Support - 4.45
Resistance - 5.20	Resistance - 5.80 to 6.20
Trend - Up	Trend - Up
Recommendation - Hold	Recommendation - Hold

PNOC Energy Dev't Corp. (EDC) has been one of the strongest amongst the blue chips recently and throughout this 10-month bull market. Let's see how its charts look like now.

Its monthly chart shows how strong this uptrend has been for the last 14 months in a row now. Since bottoming-out at 1.46, the stock is now trading at 5.10, which is already an almost 250% increase in its market value. There are no signs of any weakness yet from its monthly chart but is now fast approaching its all-time high of 6.20. Will it break above 6.20 and form a new high? With the stock already having climbed so much in the last 14 months, I doubt whether prices will easily be able to break above that level without some correction or consolidation to occur. But, I guess, as long as the trend is still up, I would not discount the possibility that prices try to get as close to that level as possible. Take note, the level to watch out for on the downside on this time-frame is the 4.45 level. Thus, we should continue to expect higher prices from this stock, that is, as long as the stock continues to trade above that level.

Its weekly chart is almost an identical replica of its monthly chart wherein it too is showing a very strong uptrend. In fact, recently or just last week, the stock may have even accelerated to the upside. If we follow its trend above, prices should continue to rocket higher until it gets to around the 5.80 level. For this time-frame, the level to watch out for on the downside would be the 4.75 level.

Now we go one time-frame lower and look at its daily chart. Again, we have a similar picture here wherein the stock continues to trade within a very strong uptrend and has even broken above its short-term resistance line at 5.00. The huge volume last Friday was because of some huge cross transactions done mostly at the 5.20 level. Could these cross transactions be bullish or bearish? I don't know but prices seems to have hesitated at the 5.20 level last Friday.

So, how do we trade this stock? Well, if you are someone who has been holding on to this stock for sometime now, I wish you congratulations and I may suggest to just hold. However, if you are someone who are just planning to enter the stock just now, I would probably hesitate to do it because, as you can see, you are no longer buying at the lows. In fact, at current levels, the stock may already be a lot closer to its highs than it is to its lows. So for those who are still holding, I would suggest Position-traders to just hold and use a break below the 4.75 level as your mental stop. Tsupiteros, on the other hand, are recommended to just hold as long as prices stay above the 4.95 level.

Once again, I would like to congratulate everybody who has this one on their portfolios. Just be sure that you know how to lock-in your gains once the trend starts to change. But for the meantime, just enjoy the party while it lasts!

Short-term Traders/Tsupiteros vs. Medium-term/Position Traders: Recommendation for short-term traders or Tsupiteros are meant to be used by traders whose holding period are limited to one day to two weeks. Medium-term or position traders are meant to be used by traders whose holding period are two weeks to three months. Long-term investors whose holding period is more than three months should not follow these recommendations.