The stocks of publicly listed company, Rizal Commercial Banking Corporation or RCB in the Philippine Stock Exchange, went up by 2.9% to PHP28.75 during today's trading session. This move was backed up with significant amount of volume that makes me consider this a convincing breakout from the 6-month descending channel pattern. If buying pressure follows through, the stocks could reach my conservative target price of PHP31.00 which I got by adding the height of the channel to the breakout point. A few days ago, RCB has also passed above the 100 and 200-day moving averages which tells us the bulls are still around. The MACD has just gone above the positive territory and the RSI is in a stable condition which even strengthens this stock. On the downside, the immediate support could be the 2-month uptrend. If the stocks further drop below that, the next support could be the 2-year uptrend.
In the bigger picture, what appears to be RCB's resistance at PHP31.00 is actually the neckline of a possible 4-year cup and handle formation with the handle being the 6-month descending channel. If it is indeed one and the stocks breakout from this humongous pattern, my conservative target price would be the PHP45.50 all-time high. However, before it reaches that marker, it needs to surpass the PHP37.50 resistance.
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