Last February 5, we noted in our equity advisor that Cebu Air, Inc. (CEB) may finally reverse its previous downtrend as it broke out from a cup and handle pattern. At that time, we pegged our initial target at Php75.00 based on the height of the pattern. After the initial breakout, CEB took a breather and moved sideways for about 2 months before finally lifting higher and reaching our initial target! 🙂
But there seems to be more to CEB’s story…
Looking at CEB’s 3-year chart, we noticed that it just broke out from a bigger rounding bottom pattern with a neckline at Php77.00. If it can stay above this level for the next couple of days then it may reach for its next target of around Php100.00. A failure for the Php77.00 level to hold, however, may send CEB back towards Php70.00.
CEB write-up from the Trading Edge Equity Advisor:
February 5, 2013
Last January 30 (see post HERE), we noted that Cebu Air, Inc. was already poised for a move higher. Finally today it woke up from an apparent sleep as it broke out from a cup and handle pattern. Now this breakout appears valid enough given the huge volume that accompanied the move. This indicates that there is an actual heavy demand for the stock at least today. Anyway, based on the height of the pattern, CEB may aim for its minimum upside target of Php75.00. However for this to push thru it has to keep itself above Php63.60. Note that there is some resistance at the Php70.00 level as well.
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