Lopez Holdings Corporation which used to be Benpres Holdings Corporation hit the 2nd place in today’s most active stocks in value traded. For those who do not know, this company serves as the holding company of the Lopez family for investments in major development sectors such as broadcasting (ABS-CBN) and cable (Sky Cable); telecommunications (Bayan Tel); power generation and distribution (First Philippine Holdings, Energy Development Corporation); and banking among others.
LPZ which is its stock symbol in the Philippine Stock Exchange went up today by 5.19% to PHP5.67. This gain propelled the breakout from the 1-month symmetrical triangle chart pattern with heavy volume. Based on the size of this of this triangle, we could get a minimum upside target price of PHP6.10 within a month as seen in the chart above.
In the bigger picture, the 1-month symmetrical triangle apparently looks like the handle of a 4-month cup and handle formation. This could also look a like an inverted head and shoulders or even a rectangle pattern for others. Regardless of what this consolidation may look like, as long as the PHP5.75 resistance gets cleared out, we could get a conservative target price OF PHP6.90. I got this by adding the height of the consolidation to the possible breakout point. However, before it gets to that level, it first needs to clear out the 11-year all-time high of PHP6.60. In case things don’t go well for the stocks, the immediate support could be the 2-month uptrend. If that breaks, the next support could be the 2-year uptrend.
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