Sunday, April 19, 2009

PHILIPPINE STOCKS: EEI (EEI CORPORATION) 4-19-2009


EEI seems to have been forming a reverse head and shoulders formation (3 arcs: The head is the biggest red arc and the shoulders are the arcs beside it) since October of last year and broke out from its downtrend last month as the price passed above the trend's resistance line (green dotted line). Are we really seeing a reverse and shoulders formation at present? Will this stock soon ripen and bound for break out? The success of the reverse head and shoulders formation in the charts of EEI will only be confirmed  once the price passes above its neckline (red horizontal line) and reaches its immediate target price of 1.7. Click image to enlarge!

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