Alliance Select Foods International, Inc. (FOOD) indeed rose in no time following an escape from a failure swing bottom. As noted in our February 25 edition of our Equity Advisor, the stock did reach and even surpassed its estimated initial target of Php1.20. Since then, FOOD has already gained by 11.82% in just 3 trading days. Presently, the stock is facing feeling some selling pressure at around the Php1.25 marker. A resistance here plus an extreme overbought reading in its RSI may point to a temporary correction in the near term. If the stock fails to overcome the Php1.25 score then it may slip back to its support at Php1.10. A jump over Php1.25, on the other hand, may signal a new breakout from a bigger rounding bottom and send the stock to Php1.60.
FOOD write-up from the Trading Edge Equity Advisor:
February 25, 2013
Alliance Select Foods International, Inc. (FOOD) may soon begin its journey north following a breakout from a failure swing bottom. The stock may weaken in the very near term as it faces a resistance right at its present level. Nonetheless, it may continue to aim for a target of Php1.20 as long as it is able to stay above Php1.05.
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