Last March 25, I presented my stock picks as a guest speaker for the Absolute Traders event “BULL pa ba or BEAR na ba???” and one of them was DMCI Holdings Inc. or DMC as listed in the Philippine Stock Exchange (kindly check here). I mentioned that DMC’s uptrend is still intact and the possibility of a cup and handle pattern forming puts the stock in great shape. Well guess what, DMC is now at a better position given its current breakout!
DMC’s 3.4% gain today propelled the stocks to break above the 5-month cup and handle’s neckline and close at PHP41.30. It also marked an all-time high of PHP41.55 within the trading session. As a newly breakout, the buying pressure will more likely continue tomorrow which will bring the stocks an inch closer to my target price of PHP48.00 which I got by adding the size of the cup to the breakout point. However there is always uncertainty in the stock market so in case the DMC stocks descend, the immediate support could be the cup and handle’s neckline. If that breaks, the next support could be the 1-year uptrend.
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