In our Equity Advisor issue last February 28, 2016, we noted that Trans-Asia Oil and Development Corporation (TA) would extend its run-up following its escape from a primary downward sloping resistance. The same event happened to coincide with a break from a bullish reversal as well. Following its rise over the Php2.20 hurdle, the stock has indeed risen and achieved its initial price objective of Php2.60, giving it a gain of a little over 16% in literally just 2 weeks! Note that an ability to sustain its rise over its interim resistance at Php2.60 may continue to lead it higher towards its next supply level at Php2.80.
TA write-up from the Trading Edge Equity Advisor:
February 28, 2016
A solid combination of fundamental catalysts plus a technical price event should easily support the rise in Trans-Asia Oil and Energy Development Corporation (TA). First, the company has reported a consolidated net income of Php905.80 million in 2015, which was a 403% surge from its 2014 income of just Php180 million. Note that the company has also declared a cash dividend of Php0.04/share. Technically, TA has also breached a downward sloping resistance line that has kept it in check for more than a year. With its rise over the Php2.14 resistance, TA may now be able to freely move higher until it encounters another hurdle at Php2.60.
*Consensus target price or average target price given by the major foreign and local brokers of various stocks on top of index names are available in our Equity Advisor!
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