Metro Alliance Poised to Revisit its 2018 High
A third liner in Metro Alliance Holdings & Equities Corp. (MAH), a holding company that is engaged in the manufacture of chemicals and contract logistics, has been head and shoulders above the rest of the listed stocks in the Philippines so far this 2020. For the year, the stock has outpaced everyone else with a 181% YTD gain. Given its relative strength, it appears that the stock may continue to out-run its peers.
From a technical perspective, the stock may possibly revisit its 2018 high. As you can see, the stock appears to be on the verge of popping out from an interim consolidation (possible handle of a cup and handle formation). Since rallying off its March lows, the stock has started to tighten below its key resistance at the Php3.00 handle. Note that a successful break above its key resistance at Php3.00 may then lift the stock towards its next resistance at Php4.00. Given the inherent volatility of the stock, however, it is always prudent to place a stop below key supports if one chooses to enter and trade MAH. Caveat.
MAH write-up from the Trading Edge Equity Advisor:
February 23, 2020
A highly speculative issue in Metro Alliance Holdings & Equities Corporation (MAH) has recently surged by 50% to close at a high of Php1.83. Its ability to lock itself at a day’s limit with unfilled demand of around 3.30 million shares suggests that buying activities on the stock may remain in the short run. Technically, a presence of a bullish marubozu candle also indicates the same. Still, holders should take advantage of its ongoing strength to sell the stock (perhaps around its next resistance at the Php2.32 to Php2.70 zone) as an extreme overbought RSI reading already warns that a retracement may be on deck soon.
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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!
