Two weeks ago, an ascending triangle formation was seen from the index’s chart; however, it was still unsure whether it was an ascending triangle or just a sideways channel. But as of trading action last week, we can somehow say that the ascending triangle formation is now more credible as the index stopped near the support line of the ascending triangle and rallied back on the last trading day.
I suggest keeping an eye on the ascending triangle formation, the breakout of the ascending triangle should happen in 2-3 weeks time.
As I have previously posted, CEB is one stock that is good to accumulate for the long hold or for the cost averaging strategy.
CEB has been moving slow but steadily since October and the stock now seems to be forming a rounding bottom formation, with resistance near 67.50. The target price for the rounding bottom formation is somewhere near 85.
It is still a long while before this stock breaks out, but I believe this is worth waiting for specially if you have been steadily accumulating this stock.
ABSP (Chart: Daily Resistance: 35.60/50 Support: 30)
ABS and ABSP is rallying from its low of the year and there seems to be an active trading action with these stocks as it can be clearly seen that volume has accumulated since Aug.
It might be that the current value of the stock deems it cheap for the actual worth of the company which is why trading volume has increased.
But whatever reason it may be, the recent activity in these stocks show a possible breakout from a symmetrical triangle. For ABSP it has a target price of near 45 while for ABS the target price is near 42. However, there are lots of hurdles along the way for both stocks as traders who lost during its decline from May to Aug maybe selling while the stock moves back to their average price.
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