Good morning everyone! Speaking of mornings, I am very hungry since I haven’t had my breakfast yet. And guess what?! I smell (FOOD) from outside my hotel room. Literally! Anyway, today’s stock feature is about Alliance Select Foods, Inc. or FOOD in the Philippine Stock Exchange which was formerly known as Alliance Tuna International, Inc. or TUNA. In my entry last February 3 (kindly see it here), I suggested that FOOD could swing up to another level soon. However, that did not pan out well as it just continued to move in a side way fashion after springing to a high of PHP 1.85 from PHP 1.52 in a little more than a week’s time. Yesterday (February 21), though, a breakout from now a complex pennant formation happened!
As you can see from its daily chart, FOOD breached both the psychological PHP 1.80 level and the pennant’s resistance when it closed at its high of PHP 1.82 from an opening and low of PHP 1.74. Yesterday’s price action, in my opinion, is very bullish since it as mentioned it ended the day at its high. Notice the long green candle which some call as a bullish morubozu in Japanese terms. Yesterday’s move was also supported by a relatively high volume, indicating that a climb north would be sustained. Now, if buying interest remains (barring any negative market reaction from the present situation in the Middle East), FOOD could aim for its upside target of around 2.12 Philippine peso.