Credicorp Breaks Out to New Highs, Cycle Suggests More Upside Ahead

Credicorp (NYSE:BAP) has broken out of its Cakra, launching a powerful rally under its Adhishthana cycle. The stock is now in Phase 9 on the monthly chart, a stage known for supreme moves. Let's break down how the cycle has played out so far and what lies ahead.

The 15-Year Build That Led to Credicorp Stock's Breakout

According to the Adhishthana Principles, Phases 4 through 8 typically form the Cakra, a bullish arc or channel-like structure that lays the groundwork for a major move. A breakout in Phase 9 often signals the beginning of a strong bullish trend and the start of what's called the Himalayan Formation.

Credicorp followed the playbook almost perfectly. The stock entered its Cakra in April 2009 and spent nearly 15 years inside it. In June 2017, it attempted a premature breakout, but just as the principles suggest, markets punished the move.

As I outlined in my book Adhishthana: The Principles That Govern Wealth, Time & Tragedy:

"If the Cākra is broken to the upside before the completion of the cycle, the forces attract it back to the Nirvana level as plotted in the 6th phase. This fall towards Nirvana can often be brutal, a consequence of taking shortcuts."

That's exactly what happened. After its early breakout attempt, the stock reversed back inside the Cakra and declined toward the Nirvana level near $127.80, before stabilizing. From there, Credicorp respected the formation until it reached Phase 9, where a breakout was scheduled under the framework. This time, the breakout stuck.

Since then, the stock has surged ~36% from its lows and ~108% since officially entering Phase 9, confirming the start of the Himalayan Formation. Currently, Credicorp is in the ascent stage and should continue to rally through Phase 9 and Phase 10, with a potential peak emerging later in Phase 10.

Investor Outlook

The outlook remains bullish as the stock sits at its all-time high. With the breakout complete, the rally should continue well into Phase 10. April-September 2028 will be a crucial window, as the stock could form its peak during that stretch, though it's also possible the peak gets pushed into Phase 11.

Having spent nearly 15 years in the Cakra, the breakout is only just beginning to show its full force. Large institutions like Citigroup are also aggressively bullish, further validating the strength of the move. For investors, the play is simple: hold on, because Credicorp is likely to continue making new highs.

Related Reading

See our commentary on Vistra, which followed the exact same pattern, breaking out of its Cakra and rallying by ~233%.

Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.