Filinvest Land’s (FLI) 4% gain today with the sudden surge in volume (PHP129,355,240 value turnover) propelled the neckline of its 10-month inverted head and shoulders to be breached. As a newly breakout, we could expect more buying pressure in the coming days as long as the global markets won’t bring in a lot of negative sentiments. Based on the inverted head and shoulders’ size added to the breakout point, the target price could be set to PHP1.58. However, there could be some significant selling pressure at the PHP1.35, PHP1.41 and PHP1.50 resistances along the way. Should anything go wrong with the stocks of Filinvest Land, a breakdown from the 2-year uptrend would be a good stop loss level. Recently, Filinvest Land has moved passed above its 50, 100 and 200-day moving averages and the MACD headed towards the positive territory which hint the start of its trend up once a again. , with what could be a bullish setup on the Philippine Stock Exchange Property Index (kindly check my post here), property stocks part of it including FLI, could be brought along.
Filinvest Land, Inc. and Megaworld Corporation (MEG) usually move hand in hand (Here’s my recent MEG analysis). From May of 2009 up to July of 2010 for instance, the stocks of Filinvest Land was consolidating into a symmetrical triangle formation until it broke out and ran from PHP1.00 to PHP1.50 in 2 months. It was right at the same time when Megaworld consolidated until its stocks climbed from PHP1.32 to PHP2.84. You may want to check the charts to confirm this. The point being, since Megaworld has started its northbound last week, Filinvest Land could have started to follow.