Alliance Select Foods, Inc. (FOOD) was already placed in our watch list on February 10 for a good reason. At that time we saw that FOOD was nearing the completion of a falling wedge pattern and noted that a break out from that formation would likely send it back towards its previous high at Php2.20. On March 6, it finally broke out from that pattern on heavy volume. At the same time, its MACD also turned positive making the break out more valid. In any case, FOOD reached for our target of Php2.20 right away (did so in just 2 days) before correcting again. If you missed the chance of selling at Php2.20, it revisited it for a second time after temporarily retracing, giving you a chance to sell again on target or at least very close to it. 🙂
FOOD write-up from the Trading Edge Equity Advisor:
March 6, 2013
Last February 10, we placed Alliance Select Foods Inc. (FOOD) in our watch list since it was already on the cusp of breaking out from a bullish falling wedge pattern. Today, it finally broke out from the said pattern on heavy volume. Given this, it may reach back for its previous high at around Php2.20. Note also that its MACD has just given us a big signal as well. This plus a break in the RSI further add to the likelihood that FOOD may indeed extend its gains in the very near term.
February 10, 2013
Alliance Select Foods Inc. (FOOD) may once again get the attention of investors in the very near term. At present, FOOD appears bound to continue its upside movement as it knocks at the resistance of a bullish falling wedge pattern. Should it finally break the Php2.00 resistance, then it may revisit and even surpass its recent high. Otherwise, a failure to move past Php2.00 could send it back down to as low as Php1.80.
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