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Chart of the Week - Sept 17, 2007

Manila Mining Corporation "A" Shares (MA)

MA Monthly Chart - Held Above its Support at 0.017

charts are courtesy of Metastock

MA Daily Chart - Continuing to Trend Up 

charts are courtesy of Metastock

Legend: blue lines - range for Tsupiteros

            dotted blue lines - range for Position Traders

            red lines - important trend lines

Manila Mining Corporation "A" Shares (MA) suddenly came to life this week along with the rest of the mining sector as the price of Gold broke above its psychological resistance of $700.00.

The monthly chart of MA above shows that the stock is still clearly on a very strong uptrend but is merely trading within a consolidation for now. The range of this consolidation is between 0.017 and 0.040. Yes, it's quite a wide consolidation but this is the monthly chart. The behavior of the stock in the last two months have been quite bullish since it appears that the stock will close the month near its highs and with a long white candle. This tells us that there is very strong support at around the 0.017 levels. However, I do expect the stock to encounter heavy resistances near the 0.030 to 0.040 levels, which is where its previous highs are located. For this time-frame, continue to expect the stock to trade within a sideways to upward trend.

In the short-term, MA is now traveling within a very strong uptrend. The fact that the stock still closed the day as well as the week at its highs, indicates that the stock will most likely continue to head higher. However, since it has already climbed straight up from 0.019 to 0.028, the stock may already be nearing overbought conditions. It's hard to say exactly when this uptrend would end. Suffice to say that the stock is already nearer to the top than it is to the bottom in this time-frame, that is.

For position-traders, I sure hope you were able to enter long in this stock when it broke above the 0.024 level. I would suggest that you simply continue to hold on to this stock and use a break below 0.024 as your mental stop. For Tsupiteros, I sure hope you were able to enter the stock long when it broke above the 0.021 level and are now comfortably holding on to a 0.007 gain. I would suggest that you simply continue to hold as well but use a break below 0.027 as your mental stop. Position-traders, who would like to enter this stock long, are recommended to buy as close to 0.024 as possible. Tsupiteros, on the other hand, who would like to enter this stock long, are recommended to buy as close to the 0.027 level as possible with stops placed on the break below the same level.

Notes:

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.