John Gokongwei-led Robinson’s Land Corporation or RLC in the Philippine Stock Exchange had been trading on a downward slope since November 2010. Recently, though, it is showing some signs of a possible reversal.
Since peaking at above PHP 18.00 last year, RLC’s move south accelerated when it broke down from a head and shoulders pattern. Eventually, it found itself at a low of PHP 11.00. During the last two months, however, RLC has been showing some signs that the market could start to pick it up again. If you can see from the chart above, RLC appears to have been bottoming already as it has been forming a possible double bottom pattern. Also, it has already broken above its downtrend line. A bullish reversal, therefore, would be confirmed if RLC is able to move past the pattern’s neckline at around PHP 13.50. If it does, it’s minimum upside target (gauged by projecting the height of the pattern from the neckline) would be just below PHP 16.00.
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