EEI Initial Target Hit
EEI Corporation (EEI) indeed extended its uptrend when it broke out from a small rectangle pattern last April 3. When it made a ‘return move’ or a ‘throwback’ towards the rectangle’s former resistance, we immediately noted in our Equity Advisor issue on April 7 that getting in near Php13.26 would be a good idea as it was very likely that EEI would bounce off of its support towards its short term target of Php14.50. About 20 days after, EEI indeed reached for our target of Php14.50. 🙂 Moving forward, the stock may move sideways for awhile before it continues its trek higher. Its bias remains on the upside given the bullish gap that it made above Php14.50 recently.
EEI write-up from the Trading Edge Equity Advisor:
April 7, 2013
EEI Corporation (EEI) may soon extend its gains last week as it presently finds some support at the former resistance of a rectangle pattern. As you can see, EEI broke out from a rectangle pattern. This breakout looks valid since it was accompanied by a spike in volume. Assuming that the Php13.26 support holds then EEI may aim for its target of around Php14.50. On the flip side, a fall below Php13.26 may send it back down to Php12.40.
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