Sunday, July 24, 2011

Ayala Land Inc. (ALI): Breakout Bound

The chart below shows that Ayala Land Inc. (ALI) is at its 3 month resistance at 16.48. With the properties sector winning some significant market sentiment lately as evident in the price action of stocks such as FLI and VLL, ALI is bound to breakout soon.


So how confident ALI could be? ALI has been consistently rising for more than a week and yet its RSI suggests that it is not yet oversold. With the properties sector bound to breakout and ALI owning the biggest chunk on the said sector, it might push the said sector up. How ALI will do will significantly affect the properties sector.

ALI also bagged a P3.5 billion sale and lease of 7.7 hectares of state property at Negros topping rival SM Prime. The said sale is prompted to provide more jobs, improve the tourism in the province, and Negrenses will enjoy a better kind of life.

Personal Disclosure: Sold PWR for a loss due to the crappy internet connection and bought ALI at 16.42. I bought PWR at 3.05 last Thursday and should have sold it at 3.30 at Friday but failed to do so because of the lag on the broker's system. I ended up selling it at 2.98 and 2.95. Looking forward to buy more ALI if the resistance is broken.

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