RCB

[kropotkin15]

RCB 6 month daily chart

rcb 6mnth daily.JPG (155.39 KiB) Viewed 387 times

After having almost doubles in price RCB was range bound with an upward bias when suddenly it was removed from the PSE index, causing its price to break below its lower channel. These past few days however RCB staged a recovery, forming a bear trap and at the same time breaking its previous highs. It closed at it peak today on very good volume and is trading at a price not seen in years.

Please see the succeeding charts (2 year weekly and 3 year weekly) to determine potential for further upside.

[kropotkin15]

On the two year weekly chart, a reversal pattern is evident (either Reverse head and shoulders or cup with handle) and a new upward channel is already forming (already a higher low and a higher high although the latter is still subject to change) and the neckline/resistance of the consolidation pattern has already been broken out of. The volume here is deceiving because it is only Tuesday so expect this to improve by the end of the week.

Note that a failure swing materialized (See STS) which is consistent with the bear trap seen in the daily chart, and the MACD seems ready to cross.

This breakout points to a very high target price over the longterm (sirs may I have your opinion on a practical target price).

[kropotkin15]

Contrary to common notions, this stock is not expensive, despite its move this year. Only three years ago, this stock traded at 45.

Forward PE is quite promising but I know you guys don't really care to discuss that so I'll just mention it for those who may be interested.

Sirs, what do you think would be a reasonable price target? Or is there something wrong with my analysis? Thanks

[tarantrader]

This is still one of the more illiquid bank stocks. So be careful.

[kropotkin15]

This is still one of the more illiquid bank stocks. So be careful.

Thanks for the warning. By illiquid you mean not easily tradeable right? Or do you mean that the bank has a cash flow problem?

[tarantrader]

Not easily tradeable. I don't really know about its cashflow.

[kropotkin15]

Not easily tradeable. I don't really know about its cashflow.

Thank you sir, thats what I thought you meant, I just wanted to make sure.