CPG: To Rise Soon?
High-end property developer Century Properties Group Inc. (CPG) looks poised for a positive reversal in the very near term. As you can see from its chart, the shares of CPG have its price fall from about Php2.40/share to around Php1.40/share in May 2012. It then after falling below the Php1.60 support during the same period, the stock just stayed eerily quiet and consolidated within either a rounding or a double bottom, or within just a plain rectangle. In either case, CPG from May 2012 to present appears to be just in ‘construction mode.’ Just today, CPG came knocking on the Php1.57 resistance which looking back was a level that acted as a support on a couple of occasions in the first half of last year. If CPG can go over the hump at the Php1.57-Php1.60 area, then it could aim for Php1.80. Given its price action today (closing at its high and for the first time moving above the 3 moving averages), it’s likely that its upward momentum will be sustained. Nonetheless, a failure to move above Php1.60 can send CPG back to snooze mode. I should say, however, that fundamental factors like the record low interest rate level should support its ascent. Imagine, one can now get a loan for a property purchase with a prime rate of as low as 5% p.a.!
