DMCI Holdings, Inc. or DMC, which is one of the leading construction firms in the Philippines, has been one of the best stock performers since the start of 2009. During the start of 2009, the company’s shares opened at PHP 2.26 in 2009. Since then, its shares has picked speed until it soared to a high of PHP 41.00 in November 5, 2010. Now that’s a whopping 1,814% gain in less than two years! If only I had placed 1 million back then, I could have retired comfortably by now. Oh well.
Looking at DMC’s daily chart, it seems though that it is already bound for a bearish reversal. It’s glory days may already have been over as it just broke down from a head and shoulders formation. During the last couple of days, it managed to rally but the neckline of the head and shoulders acted as a strong resistance which would most likely push its price back down. In the next trading sessions, if it is unable to clear above the neckline then it could turn south and fall down to its minimum downside target of about PHP 26.00.
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