Ramon Ang-led San Miguel Corporation (SMC) may revisit the Php120.00 area as it appears to be in the process of completing a bullish reversal pattern in the form of an inverted head and shoulders or an inverse kilroy. You see, the higher low base that it formed (May to June low relative to its February to March low) is indicative of the fact that people are already willing to go into the stock even at a relatively higher price (compared to when it fell from Php120.00 all the way to Php55.00). This suggests an ongoing switch of capacity from the sellers to the buyers. Moving forward, SMC may reach for the said Php120.00 objective following a move past its interim high of Php87.00. In the mean time, the stock may just trade range bound between Php75.00 and Php87.00.
*Consensus target price or average target price given by the major foreign and local brokers of various stocks are available in our Equity Advisor!
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