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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