Jollibee’s Steady 28% Ride (in just 3 weeks!) Since Pivot From a Base
Jollibee Foods Corporation (#JFC) has marked steady 28% ride (in just 3 weeks!) since it pivoted off a notable base last October 19, 2020, which was exactly two months after Jollibee’s limited edition funko pop ride was released. Granted that the said base was not your conventional cup and handle, inverse head and shoulders, nor rounding. Still, one could not really mistake that the stock was already on the verge of staging a fresh bull wave following its ability to establish a series of higher low bases against a general down leg. In any case, the stock is slated to extend its ongoing bull-run following the said break (and sans a presence of a bearish reversal). Additionally, a ‘golden cross’ between its key 50-day and 200-day moving averages also indicates that its current upside momentum may persist in the short run. Note, though, that JFC’s nearest resistance can be found along the Php225.00 handle. On the fundamental end, JFC is actually on the expensive side as it is already trading at a 41% premium over its 12-month consensus fundamental (2021 target) fair value estimate of Php139.45. It is even higher that the most generous institutional estimate of Php171.00. While this may be of some concern, it could be that the market is already pricing in a faster earnings recovery in 2021 and onwards.
JFC write-up from the Trading Edge Equity Advisor:
October 19, 2020
Any short run pull back on Jollibee Foods Corporation (JFC) may now be taken as a window to buy the stock. Technically, one can see that the stock has just broken out from a complex base on good supportive volume. With its successful move above its key resistance at Php150.00, the stock may then establish a fresh bull leg and rise towards its next resistance at Php184.10 to Php187.80. Note, though, that its measured objective can be found at around Php200.00 to Php209.00 region.
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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!
