Will Suntrust Shine This 2020?
Late in October 2019, Suntrust Home Developers, Inc. (SUN), a unit of Andrew Tan’s Megaworld Corporation (MEG), surged by as much as 115.40% to a high of Php1.96 from Php0.91 on news that Hong Kong-based Suncity Group Holdings, Ltd. was acquiring a 51% stake in the company. To finalize the deal, Suncity paid Php2.55 billion for for 2.55 billion shares or Php1.00 per share in the company. The stock, however, corrected all the way back to a low of Php1.05 before rallying again towards the proximity of its 2019 high.
From a technical perspective, it appears that the stock may likely extend its recent jump. As you can see, the stock has just skipped over the resistance of what looks to be a bullish flag pattern. Following its rise over its interim resistance at Php1.67 on better-than-average volume, the stock may then reach for its next hurdle at the Php1.96 to Php2.00 area.
Looking at the stock’s long term chart which covers the last 20 years, however, shows an even more promising picture. As you can see, the stock could be on the verge of breaking out from a multi-year bullish reversal formation. The key event that needs to happen, of course, is for it to breach the Php2.00 key resistance on heavy volume. A sustained rise above the said level may then lead the stock to a more prolonged bull trend. Caveat.
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