Two months ago, MRC Allied, Inc. (MRC) broke down from its major support line along with a break below the 50, 100 and 200-day moving averages and the MACD going below 0. Then it consolidated into a 1-month broadening pattern right below the major support line to continue its drop from PHP0.70 to PHP0.37 in just 6 days. By the looks of it, a bearish formation which is the rising wedge could most likely be forming to continue the downtrend. If it breaks down and the stocks head lower, the next support is PHP0.29. On the upside, PHP0.465 is the immediate resistance. If that hurdle gets cleared out, the next resistance could be PHP0.54.
One of the reason for the huge drop of MRC Allied, Inc. was because of the additional listing of more than 3 billion common shares priced at PHP0.20 per share last June 14. For those who had it, selling at the current levels would already yield you twice your original shares’ worth. So if more profit taking happens, I wouldn’t be shocked if MRC reaches PHP0.30.