One of the big banks who lead this PSE rally to 4250 resistance is Bank of the Philippine Island. It came to as low as 53-54 when we were in the middle of the Japan earthquake crisis. And last Friday-Monday, it got knocked out again into its all time high resistance which were encountered 2006, 2007, late 2010 and late last week for 2011.
At first, I saw BPI hitting 60.85, without any hesitation to sell it, but was really a temptation for its overpriced status - a hefty 19 PE ratio, and early this Monday, I was just looking into its Chart and noticed thats its been BPI's all time high around 60.85 area, I was chasing into selling this stock last monday at 60.0, but went down strong end of the trading period.
Now its running around 57.xx, And is in correction phase to gather strength in order to try hitting that all time high. But in my own opinion, with last year's 10B stock offering, this Company is currently under pressure to make those 10B a sellable loan to the public (Notes,bonds, Corporate Loans). Also, it ended the 2010 at 60, and BPI's CEO forecasted a target growth of 15% for 2011, so meaning BPI's yearend price for 2011 is 69 pesos? For me, the 60.85 area is still a major resistance and a selling point as of this moment.
Another high flyer bank is PNB. This stock went to as low as 45 pesos during Japan Crisis. honestly, I dont know where this stock is going, Technicals is not clear to have guide with either, yesterday, it was just tempting to higher with the 65.4 resistance, and successfully did close higher at the bells. Today, it hit 68.xx with a flat RSI at 70.0. HOLD rating, specially its 2010 EPS is only at 4 per piece, 18 PE ratio, which is currently the average PE of all banks.
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