Super Volcano In First Gen Corporation (FGEN)
Seeking Alpha Analyst Since 2010
If my chart reading reading is correct, then First Gen Corporation or FGEN in the Philippine Stock Exchange could be poised for a huge upside.
FGEN is actually one of the top performers among local equities so far this year with about 11% in YTD return. But its story does not end there as based on its daily chart at least, FGEN could explode like a super volcano. Looking at its price chart over the past 6 years, I noticed that it was bottoming into a huge cup and handle pattern with a neckline at just above PHP 14.00. FGEN is already inching towards the said resistance and when it breaches that level, there’s a good chance that it could swing all the way towards PHP 21.20 (measured by projecting the height of the cup from the point of potential breakout)!
I would, of course, wait for a break out to occur first before I go long to diminish the possibility of getting whipsawed. An entry point of PHP 15.00 would give me a possible 41% upside!
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