A bullish hammer Japanese candlestick pattern that showed up in the chart of GT Capital Holdings, Inc. (GTCAP) last November 26, 2013 indeed led a rally in the stock. As per our Equity Advisor that we released during the same day, we mentioned that the stock would most likely rebound very soon following the steep slide that it saw when it fell from an all-time high of Php899.00 to Php706.00 in just 5 weeks. True enough, GTCAP indeed rebounded and achieved our target of Php800.00.
Since then, the stock has drifted sideways with a downside bias. Presently, the stock appears to be hanging on to an upward sloping support that connected its lows on August 28 and November 26, 2013. A fall below the mentioned support will validate its ‘breakdown’ from a continuation head and shoulders pattern and send it down to its low at Php685.00. A rise over Php737.00, meanwhile, may nullify the break and send it back to Php780.00 or even to Php800.00
GTCAP write-up from the Trading Edge Equity Advisor:
November 26, 2013
GT Capital Holdings, Inc. (GTCAP) may soon stage a rally following today’s showing. As you can see from its chart, the stock formed a hammer Japanese candlestick pattern. A hammer is a candle with a long lower tail. The lower tail in return indicates support at that price area. An oversold reading also adds to this possibility. Given these, the stock may bounce in the very near term. If it does then it could rise back to its immediate resistance area at Php750.00 to Php760.00. A move above that may send it to Php800.00. On the other hand, a fall below today’s low of Php706.00 may bring it down to Php685.00…
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