NOW Corporation Generated A Clear BUY Signal At Php1.00!
As early as the start of the year, we’ve already been monitoring NOW Corporation. We noted that it would be primed for a major run-up as it was on the verge of completing a multi-year (long term) bullish reversal formation. On March 31, the key technical event that we had been waiting for finally occurred. In our Equity Advisor dated March 31, we mentioned that it would start a new uptrend and aim for at least Php1.60 given its breakout from its major resistance at Php1.00 on heavy volume. As you know, the stock has already jumped by about 240% since its break from the Php1.00 handle. Moving forward, the stock may still be expected to extend its run due to the lack of a bearish reversal yet. Still, one should already be a little cautious as there is already a presence of a bearish divergence among its price, volume and RSI. A present holder may ride it up but with trailing stops in mind. For those who are looking to get into it, it may not be advisable at this point from a risk-reward point of view.
NOW write-up from the Trading Edge Equity Advisor:
March 31, 2016
Now Corporation (NOW) may have placed itself at the early stages of a new uptrend. As you can see from its chart, after an initial failure to break above the Php1.00 hurdle, the stock has recovered from a subsequent low of Php0.60 to break anew past the Php1.00 handle. You see, its rise over the mentioned barrier is actually a trigger for a major bullish reversal as such marks the completion of a notable basing formation. Following its break past Php1.00, NOW may now head higher and aim for at least Php1.60.
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