Alpha Playbook

DNL

Michael Bryan Lim

1/10/2013

Please note that all information in this newsletter only reflects the opinion of the writer. How the
information would be used would be to the discretion of the reader. Any gain/loss that would result
from reading this newsletter would therefore be to the credit of the reader and not the writer.

Im just going to do a quick snapshot here to show the importance of todays price action for DNL. DNL
opened with a gap up (above resistance at that!) and was able to break the critical 4.5 (psychologically
important) price point. Volume is also significant. Candle also seems to be that of a belthold - a candle
with a body significantly larger than the previous candles. This type of candle is meant to get the
attention of people. Although its not a classic belthold in a sense that there is a long upper shadow
which would suggest profit taking, however maybe this is natural after a long consolidation. People
may have been expecting DNL to perform like its peers COAL and CAL.
By the way I also posted the chart of EW after it broke 20, this is to show you guys the significance of the
gap up + belthold (long white candle or maribozu) combo. This was when EW acquired its universal
banking license I believe. After the news, notice how EW broke 20?, the break out was confirmed by a
gap up at 22. EW never turned back since then. Lets see if DNL could mimic the movement of EW.
For DNL, the upsurge was actually triggered by DNL inking a deal with a Japanese firm. This may have
been the catalyst for DNLs recent uptrend.
http://www.pse.com.ph/resource/disclosures/2013/pdf/dc2013-0145_DNL.pdf