In our Equity Advisor issue last October 3, we noted that STI Education Systems Holdings, Inc. (STI) would start to establish a new up wave with a measured objective of Php0.90. Fast forward by 7 weeks since then and one can see that the stock has indeed achieved the mentioned goal. Its technical set-up plus its liquidity have allowed us to have a relatively heavy position on the stock and gain by roughly 36% in just 7 weeks. Moving forward, a presence of a bearish engulfing candle along with an interim bearish divergence may temporary place a halt on its present ascent. The mentioned technical weakness may, in the mean time, lead the stock back to its nearest support at Php0.83 to Php0.85. Note, though, that the stock’s uptrend is still intact. As such, the stock may eventually march higher again before it meets another resistance at the psychological Php1.00 handle.
For its previous set-up as mentioned above, kindly see below for reference:
STI write-up from the Trading Edge Equity Advisor:
October 3, 2016
STI Education Systems Holdings, Inc. (STI) is another stock that is worth placing on ones watch list. This is so as STI appears to have just broken out from a bullish reversal pattern that resembles a cup and handle. Moving forward, a sustained move past Php0.65 should trigger an upswing that can send it towards its next resistance at Php0.84. Note that the same escape may bring the stock all the way to a measured goal of Php0.90.
*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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