Need A COAT?

Chemrez Technologies, Inc. (COAT) is one of the publicly listed companies whose stocks haven't significantly increased since the start of the 2009 bull run. It has been consolidating sideways for 3 years now and in the process, there could be a 3-year cup and handle forming with the neckline at  PHP2.65. Some probably wouldn't agree that this is a cup and handle pattern but whatever consolidation this is, a convincing break above the PHP2.65 marker with heavy volume could send the stocks all the way to my target price of PHP3.75. This I got by adding the consolidation's (cup and handle) height to the possible breakout point. The stocks are currently moving above the 50, 100 and 200-day moving averages and the MACD and RSI are in great shape which adds the chance of an uptrend pursuance. Still, unless a breakout takes place, I'd see this continuing to move sideways. However, in any case the stocks drop, buying pressure could be experienced at the 2-year support. If that breaks, the next support could be PHP2.37.

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