APC Group Inc. or APC as listed in the Philippine Stock Exchange hasn’t made a bullish statement in almost a year. In fact, its stock value had dropped from this year’s high of PHP 0.97 all the way to PHP 0.45. The good news is, the 1-year downtrend line was broken a month ago and now the stocks’ bias is more likely on the upside.
APC’s outstanding 4.9% gain today formed the right shoulder of a possible inverted head and shoulders formation after it retested the previous downtrend line. Technically, this is a bullish reversal setup as many of you might know. Aside from that, today’s volume was beefed up with significant buying activity and hugh crosses. If the buying pressure breaks the neckline of the inverted head and shoulders, based on its size, we can get a minimum target price of PHP 0.80. Although there could be some selling pressure at the PHP 0.75 resistance level on the way up.
The indicators are also showing positive signs for the APC stocks. The MACD is about to make a bullish crossover and the RSI stabilized. The stock price has breached above the 50 and 100-day moving averages with the 200-day moving average next in line. With these in line along with the inverted head and shoulders setup, an upward swing could likely occur soon. Still, there’s always the downside, so in case APC fails to climb up, I’d set my stop loss below the PHP0.58 support or at the breakdown of the 2-month uptrend.