Happy Easter everyone! I hope all of you have enjoyed this much-needed vacation. Anyway, let’s go back to regular programming with my technical analysis on RFM Corporation of the Philippine stock market.
Concepcion-led RFM Corporation has been under the radar for the last several years. To make the story short, the performance of its shares has been a major disappointment to its investors as it consistently underperformed the PSEi. Recently, however, has gained some fans as it rose from Php1.19/share to start the year to Php2.13/share last Wednesday! Now, one might ask given its recent run, “isn’t already too high to go long?”
Zooming out to its 10-year chart, I was surprised to see a huge inverted head and shoulders chart pattern that it had formed. With an apparent neckline resistance at around Php2.00, a successful move above this level could jockey it higher to just below Php4.00. But first, it has to clear it’s high at Php2.20. Now, given its ‘breakout’ from a pennant pattern over the 6-month time frame, a valid breakout from the bigger inverted kilroy or head and shoulders could be in the works. On the downside, a failure to move past the Php2.20 high could send it back down perhaps to Php1.80.
Let’s see how this will go over the next couple of days or weeks.