Last February 19, we also noted in our newsletter that East West Banking Corporation (EW) may be ready to resume its uptrend after consolidating within a symmetrical triangle pattern. On February 21, it broke out from this pattern on heavy volume, making the move all the more valid. Moreover the breakout was also accompanied by a positive cross in its MACD. In less than 2 weeks after breaking free from the triangle, EW reached its target of Php36.00.
EW write-up from the Trading Edge Equity Advisor:
February 19, 2013
East West Banking Corporation (EW) may have temporarily given the new comer PBB a share of its limelight today but it appears that it may soon regain that spotlight. Its IPO last year may not be as stellar as PBB’s but it has more than made up for it as you can see from its chart above. You see, after performing badly for around three months following its IPO, EW has never looked down after it finally broke free from the Php20.00 resistance. It then continued to move forward all the way past Php30.00 in less than a year. For about 6 weeks now, EW has been consolidating within a symmetrical triangle. A breakout or a move past Php32.00 could send it to Php36.00. Note also that its MACD is about to make a positive cross, which indicates a ‘buy,’ already. Since it is on an uptrend, the possibility of it breaking to the upside is higher. On another note, we were informed that Col Financial has raised its target price on EW from Php35.00 to Php42.00.
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