Lopez Holdings Corporation or LPZ in the Philippine Stock Exchange caught the attention of many traders yesterday (December 13, 2011) when it rose by 4.31% to close at PHP 5.08. Noticeably, yesterday’s trading volume also soared to its two-month high, suggesting that a move higher could likely be sustained.
LPZ is one of the few remaining stocks that has a bullish technical set-up. From a high of PHP 6.95 last May, LPZ had fallen to a low of PHP 4.00. Since then, it has consolidated in to what appears to be a cup and handle pattern. See that during this time its trading volume looks to represent a cup and handle as well. And with yesterday’s move above the pattern’s neckline at PHP 5.00, LPZ could hit a target of PHP 6.00, as gauged by the height of the cup, if it is able to keep its head above PHP 5.00.