Last February 21, we noted in our newsletter that DMCI Holdings, Inc. (DMC) may be bound to rebound as it approached it previous support at Php52.00. Several days after, DMC indeed rallied and went straight for our minimum target of Php55.00.
DMC write-up from the Trading Edge Equity Advisor:
February 21, 2013
DMCI Holdings, Inc. (DMC) may be bound for a quick rally in the interim as it is finding some support at the Php52.00 marker. In the same way, its RSI is also finding some support at the 35 level. A bounce off Php52.00 may send DMC back to somewhere between Php55.00 and Php56.00. Note that buying support on SCC (despite being sold down heavily, buyers were quick to pick up SCC shares) would also reflect positively on DMC. On the negative side DMC may be headed for a big loss if the Php52.00 support, which is a major one, gets violated. As you can see, it also be forming a possible rounding top pattern and a breach of its neckline at Php52.00 would validate it. If this happens, DMC may quickly fill the previous gap and fall all the way down to Php40.00. However, I should note that while still a possibility, this scenario would be unlikely since we are widely on a strong bull market.
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