Abacus Consolidated Resources (ticker: ABA) closed at Php 0.79/share today, Jan. 31, 2012, up by 5.33% from it's previous close at Php 0.76. It bounced from it's 3 months downtrend support at 0.75 bringing it with a potential upside of 14% or 0.12/ share if it hits its resistance at 0.87 (target price taken from the projected resistance level of the preceding 3 month lowering top trend). Based on it's current momentum, the target price could be hit within the next month. Watch out for the MACD-line-crossover to confirm the short term reversal.
With the stock in the oversold territory, there is a potential trading buy at 0.76-0.77 with a sell stop loss order at 0.74. Furthermore, given today's substantial gain, we can expect the price to drop slightly tomorrow. This may make it a good initial entry point for aggressive traders.
Disclosure:
I have ABA in my portfolio.
