What’s cooking in the Philippine Stock Exchange as of late? Well, Alliance Select Foods, Inc. or FOOD looks to be on a brink of another major upswing! For those who does not know this company, it used to be known as Alliance Tuna International, Inc. (TUNA). It’s a company that is engaged in tuna processing, canning, and export of canned tuna products from General Santos City in Mindanao across the globe. During the past two years, it bought stakes in PT International Alliance Foods Indonesia (PTIAFI) and Prime Foods New Zealand (PFNZ) to enhance its international reach and product diversification.
So like I said, it appears that a major bullish move is about to happen at least from a technical point of view. As you can see from its chart, FOOD has been forming a pennant pattern after making some headlines during the past two weeks when it suddenly erupted from PHP 1.52 last January 6 to reach a high of PHP 1.850 yesterday (February 2) and earlier today (February 3). Participation in this issue has also increased as can be seen in its volume during the same period. This suggests that people with knowledge could be seeing something worth their money. Now, a break above the mentioned high could send FOOD skyrocketing towards PHP 2.18 (gauged by projecting the height of the pennant’s pole from PHP 1.85. So my suggestion is better keep an eye or two on this one as this may swing for a home run sooner than later.