@pediong has been sharing his thoughts consistently in the Investa community ever since September 2020 and has been very active recently.
A couple of weeks ago, our featured trader posted his technical analysis on $ALI, a hot stock in the local market and real estate company led by the AYALA GROUP. $ALI was charted by @pediong predicting that $ALI was bound for a retest at the 27-ish area and bound for a breakout if it continues.
As the stock recently bottomed at around 22.35 (52-wk low), @pediong charted its support, volume, resistance, trendline, and RSI on the chart. @pediong felt an opportunity to have a good entry near the 52-wk low at the 22-24 area.
TECHNICALS OF THE TRADE
Technically, $ALI bottomed at 22 are which was also its 52-wk low. Thus, the stock recently broke the resistance 27ish area. After breaking the resistance, volume was still strong. ALI will now have to face resistances at the 30 and 32 levels as it tries to continue its uptrend. ALI is showing strength in terms of RSI as it continues to reach the oversold area.
@pediong was confident that this stock would further go up as it already bottomed at 22.35 (52-wk low). He also charted that ALI will go up as he indicated in his TA the supports, resistances, trendline, Volume, MA and the RSI. He charted a good entry near the support and possible resistance. Furthermore, he is planning his trades carefully as real estate industry isn’t in the best of positions right now.
FUNDAMENTALS
Ayala Land Incorporated is a real estate developer that focuses on real estate development of middle-high class properties. ALI is led by the AYALA GROUP, a prominent family in the country and a diversified holdings firm focused on real estate, telecom service, banking, malls, and others. As such, the stock is heavily affected by how the real estate market moves. Although interest rates remain high, the main driver for the stock right now seems to be the overall bullishness of the market as a whole.
WHAT SHOULD BE MY NEXT MOVE
As the stock recently broke its resistance it is bound for a retest in the next few weeks. It would be wiser to observe and wait for what $ALI and other property stocks might do next before jumping in. This stock is good for growth since the real estate industry in the Philippines is poised to grow in the following years. The demand from consumers globally is also continually growing. However, it’s best to wait for a consolidation, pullback, or a good entry near its support for a better risk-to-reward ratio.
Once again, KUDOS to @pediong for being this week’s featured trader! Enjoy your 14-day InvestaPrime Access and continue to be an inspiration to the trading community.
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