This is the right time to do some stocks window shopping. The market is in the consolidation state for almost the whole first quarter and a correction is just waiting around the corner. While looking around for some potentially good stocks, I have stumbled upon DMC.
The chart below shows that DMC is getting near it's two year uptrend support at around 30ish. If the support holds, DMC is bound for another strong uptrend. In approximately 2 years time, DMC rose from barely a peso to as high as P35 or 3500%. Should such slope and momentum continue, DMC could go as high as P50 or even P55.
The chart below shows where DMC stands in the Elliott Wave Theory. Though not as steep as it should be, I think that DMC is already at wave 4 and wave 5 is coming up soon. DMC is also at its 23.6% Fibonacci support level. Though 23.6% doesn't hold strong in comparison to 38.2%, 50%, and 61.8%, it is still a valid support. Considering that DMC is in consolidation and it's short support holding quite well, I think that makes 23.6% valid.
Fundamental wise, DMC has just bagged in 3 contracts for 2011 worth billions. This news actually prompted me to give DMC a look.
I still don't think that DMC's fundamentals is that strong to push it back up. However DMC is really looking good technically and just like most of the stocks that I'm looking at, a few more fundamentals are needed to trigger an uptrend.
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