Chart of the Week - JG Summit Holdings, Inc.

Short-term Traders/Tsupiteros:	Medium-term/Position Traders:
Support - 13.25 / 15.00	Support - 8.90
Resistance - 16.00	Resistance - 16.00 to 18.00
Trend - Up	Trend - Up
Recommendation - Take profits	Recommendation - Hold / Take profits on strength

I don't know what's up with Gokongwei stocks but they certainly are outperforming everything in the market nowadays. The strongest one of the bunch is no other than the holding company itself - JG Summit Holdings, Inc. Unfortunately, the stock looks overbought from any angle that I look at. The charts above may even look self-explanatory.

The monthly chart is showing a stock that is not only way overbought but is also right at its all-time high of 16.00. While I'm not discounting the possibility that the stock may even exceed its all-time high of 16.00 within the month, I'm quite certain that the stock may react downwards from here as profit-taking may soon set in. The steepness of its ascent is certainly something to be worried about right now. Short-term term support for this time-frame is pegged at the 8.90 level. I would be very worried for the bulls if prices drop below that level.

The weekly chart is showing a very strong trend for JGS. However, as you can see in the chart above, the stock is now nearing its medium-term resistance at 18.00. While I would not discount the possibility that the stock continues to climb up from here and even test its medium-term resistance at 18.00, I would expect some sort of consolidation or correction at that level, if not at current levels. Short-term support for this time-frame is pegged at the 13.25 level. I would be quite worried for the bulls if prices fail to hold above that level.

Finally, the daily chart of the stock is showing an almost exact same picture as its weekly chart. The only difference is, the stock has already began to show some signs of weakness in the daily chart. If you'll notice, the stock has actually formed a black candle right around its resistance at 16.00. The fact that this pattern occurred right after a very big ascent may indicate that the bulls are getting tired in this time-frame. From the way I see it, the stock may actually begin to consolidate or correct right now.

How do we trade this stock? With regards to Position-traders, I would certainly no longer recommend buying this stock anymore at current levels. However, for Position-traders, who are holding it, you may opt to just hold and use mental stops down below. I would suggest to use a break below the 13.25 level as your mental stop. For those who would like to pick the highs, you may want to take profits as close to 18.00 as possible. As for Tsupiteros, I would suggest to start taking profits right now. I would only consider buying this again if prices drop back down near 13.25.

Be careful on this stock Tsupiteros as this is certainly one stock that is probably in a "bubble" already.

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.