Anticipating DITO CME’s 53% Surge in the Last Two Weeks
Davao-based Dennis Uy-led DITO CME Holdings Corporation (DITO) surged by 53% to a fresh 2020 high of Php5.76 from Php3.76 in the last two weeks. Interestingly, the apparent catalyst of its recent jump was actually the market’s renewed interest on Now Corporation (NOW) as it received a provisional extension from the National Telecommunications Commission to operate as the country’s “fourth telco.” On news, NOW’s stock immediately hit that day’s ceiling of Php3.58 from Php2.59 to close with a gain of 50%. As the Philippines’ “third telco,” DITO CME also jumped 9.57% to Php4.12. It was only the beginning, however, as the stock continued to rise in the next several days, gaining by 50% as mentioned in just 10 trading days.
Similar to how Trading Edge positioned for the likely spike in Now Corporation, the same writing was also on the wall with regard to DITO CME. From a technical standpoint, the stock was actually already on the verge of pivoting from a notable base (from a inverse cup and handle / inverse kilroy). Indeed, a pivot above its neckline resistance of Php3.85 has so far led it to rise by 50% to its current price of Php5.76. While profit taking activities may occur in the short run given its recent sharp ascent and its overbought RSI reading, its uptrend remains very well intact. Sans a presence of a bearish reversal or a high wave candle, we can assume at least at this point that the stock may likely continue to trend higher later on. Note, though, that its next resistance can be found around the Php7.00 handle.
DITO write-up from the Trading Edge Equity Advisor:
September 16, 2020
DITO CME Holdings Corporation (DITO) may possibly establish a fresh bull leg in the coming week or so. As you can see from its chart, the stock appears to be at the latter stages of completing a potential inverse head and shoulders formation. Note that the stock may race to as much as Php6.70 to Php7.00 should it successfully clear its neckline resistance at the Php3.85 to Php4.00 area.
DITO write-up from the Trading Edge Equity Advisor:
September 21, 2020
In our Equity Advisor issue last September 16, we noted that DITO CME Holdings Corporation (DITO) was already a few days away from completing a basing pattern in the form of an inverted head and shoulders. Following its break above its neckline resistance of Php3.85 on good supportive volume, the stock may then swing to a new uptrend and reach for Php6.70 to Php7.00. Note, though, that an initial stop must be placed under the Php3.85 mark.
DITO write-up from the Trading Edge Equity Advisor:
June 2, 2020
DITO CME Holdings Corporation (DITO) may have just entered the early stages of a fresh up leg. As you can see from its chart, the stock appears to have just broken out from a cup and handle formation. Following its break above its pivot handle at Php2.33 on larger-than-average volume, the stock may then continue to rise and reach for its next resistance at a prior low of Php2.85 to Php3.00. Note, though, that one must place an initial stop below Php2.33.
DITO write-up from the Trading Edge Equity Advisor:
May 24, 2020
DITO CME Holdings Corp. (DITO) appears to be in the process of completing a possible bullish reversal. Note that the stock may see another leg up should it hurdle its nearest resistance at Php2.35. Note that a break past the said mark may then send it to its next resistance at its prior low of Php2.85 to Php3.00.
DITO write-up from the Trading Edge Equity Advisor:
April 20, 2020
DITO CME Holdings Corporation (DITO) may likely extend its recent rally. As you can see, the stock has just turned up from a very short run inverse head and shoulders. Additionally, the stock has also surfaced above its 50-day moving average. Given these, the stock may then head towards its next resistance at its previous low of Php2.85 to Php3.00. Note, though, that a stop loss trigger must be placed under Php1.75.
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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!
