RFM Corporation (RFM) broke out last April 17 from a broadening triangle pattern which of course was reported in our Equity Advisor on the same date. We said that RFM would aim for an initial target of Php5.70 given the validity of the move due to a spike in volume. A couple days after the breakout, RFM made a ‘throwback’ before it eventually jumped last Friday to our initial target of Php5.70. Still, RFM may further extend its lead as suggested by its larger candle compared to other days. 🙂
RFM write-up from the Trading Edge Equity Advisor:
April 17, 2013
RFM Corporation (RFM), a stock that gave Trading Edge a return of a little more than 100% in 2012, could be poised for some more gains. As you can see from its chart, RFM has recently broken out from a broadening triangle pattern. What makes this breakout more valid in our eyes is that it did so with an upward gap. This means that the stock managed to hurdle the resistance at Php5.10 very easily, implying that buyers are really gung-ho on the stock. In any case, RFM may reach for its target of around Php5.70 assuming it stays above Php5.10. A failure for this new support to hold, on the other hand, could send it back down to at least Php4.80 or even to Php4.50.
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