Nearly 5 months have passed since my last post about UBP, it was still prematurely forming the cup and handle formation (indicated by the red lines) in the stock chart. However, as we can see now, it broke out from a cup and handle formation last August and achieved its target price of 32 pesos per share 2 weeks ago. Click image to enlarge!
In the 1st picture, a chart of UBP dating back from 1996, the stock price has bounced of its 10yr support (violet dotted line). The 2nd picture at a closer view, UBP has broken out of a resistance (green dotted line since January of 2008). 26.5 per share looks like a good buy for UBP but a better bet is when the price breaks out of the cup and handle formation's (indicated by the bigger red arc is the cup and and the smaller red arc indicates the handle) resistance line (red horizontal line). Closing above 27 is my best bet! Click image to enlarge!
A bank pick of mine would be UBP. This isn't because I love the bank but its stock price is showing signs of bullishnes. In the chart we have here, we can see that UBP had come out of its downward resistance (green dotted line) last February and now it's consolidating sideways. As far as I can see, a possible cup and handle formation (biggest red arc idicates the cup and the small red arc indicates the handle) is being formed in the chart. This will only be confirmed once the price passes thru the resistance line (red horizontal line) or breaks out of the cup and handle with my minimum target price set at 33. Click image to enlarge!
