Classic bullish reversal led to First Gen’s (FGEN) rally
Lopez-led First Gen Corporation (FGEN) has rallied by 24.28% since the middle of November 2018 as investors position in anticipation of its participation of the building of an LNG project in Batangas City which was expected to commence in the third quarter of 2019. At present, the stock is still trading along a stage 2 uptrend even after it hit its measured move at Php20.06. Sans a breakdown from an interim bearish reversal or a presence of blow off top, FGEN is actually expected to extend its run until it meets another resistance at a prior congestion zone at Php22.80 to Php23.00. Note that the said zone is actually very close to its 2019 consensus fundamental target of Php22.65. Anyhow, FGEN’s recent and still ongoing rally is actually very easy to catch at the onset. Back in November 16, 2018, the stock break a key pivot level on heavy volume. That event became the spark that led to its 24% jump inside just 2 months.
FGEN write-up from the Trading Edge Equity Advisor:
November 18, 2018
First Gen Corporation (FGEN) may likely begin a new uptrend in the near term. As you can see, the stock has just swung out from what appears to be an inverted head and shoulders pattern. Its break past its neckline resistance at Php17.00 on good supportive volume may then lift it towards its next ceiling at around Php19.50 to Php20.06. Note, though, that a stop loss trigger must be placed just below Php17.00.
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