How East West Banking Corporation (EW) Trekked North
East West Banking Corporation (EW) has indeed swung higher following its breakout from a bigger rounding bottom when it finally cleared the Php18.00 handle. As you can see, the stock has actually achieved its adjusted target at Php21.00 already. Moving forward, given its new uptrend and the lack of a bearish reversal, it is likely that the stock will remain on its upward course. following a rise over its interim resistance at Php21.80, EW may head towards its next hurdle at Php23.30. Note that consensus also gives EW a 6-12 month fundamental fair value target of Php23.00.
In any case, here’s how we tracked the movement of East West Banking Corporation (EW) since its bottom of Php14.34 last February 29, 2016.
EW write-up from the Trading Edge Equity Advisor:
June 21, 2016
East West Banking Corporation (EW) has just surfaced above its resistance at its prior support of Php18.00. Check that the said break happens to be a breakout from a bullish reversal in the form of a rounding bottom as well. In any case, its rise over Php18.00 should lead it to build a new uptrend with a measured goal of Php21.00 to Php21.80.
EW write-up from the Trading Edge Equity Advisor:
May 18, 2016
East West Banking Corporation (EW) is due to swing higher in the next couple of days. This is so as the stock has already been able to pivot off a bullish reversal when it successfully closed above Php16.40. This should then lead the stock to a new uptrend with an initial goal of Php18.00 to Php18.46.
EW write-up from the Trading Edge Equity Advisor:
February 29, 2016
East West Banking Corporation (EW) saw its shares slide by 9.92%. Despite its recent demise, it is important to note that the drop in its price is not due to any fundamental factor. EW slipped because it was deleted from the MSCI Global Small Cap Philippines Index. Because of its deletion, passive funds which were mirroring the said index were forced to unload their position as well. Having mentioned that there is no fundamental change in the company, we can therefore expect the stock to rebound as trading normalizes the following day. Note that its near term resistance is seen at Php15.82 to Php16.00.
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*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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