Why Popular Could Soar 20% and More In The Near Future
Popular (NYSE: BPOP) hit an all-time low in 2011 of $10.80, down 96 percent since its 2005 highs of $244.23; a devastating blow to long term shareholders. Luckily, blue skies are just around the corner for this regional bank. The weekly chart below shows the story of the past three years price action.
As mentioned, prices hit a low at $10.80 in late 2011 and have since rebounded some 163 percent to Thursday's price of $29.49. Prices were able to regain the weekly 200 SMA resistance in early 2013, and a golden cross of the 50 EMA crossing above the 200 SMA is on the horizon. For the past 3 months prices have been in a consolidation phase forming a bull flag between $26 and $29.75.
To further our conviction it’s The Technical Breakout Trader’s advantage to analyze multiple timeframes. From the weekly chart, we take it down to the daily chart for better entry points and to confirm our weekly analysis.
Below we can see that $29.75 area has been resistance for the past 3 months from the large price appreciation in January of 2013. A breakout above this area would warrant a LONG entry with stop losses just below. Our target would be the $36 next weekly resistance area from February 2013 representing a ~20 percent gain. After a likely pullback, the $42.50 resistance in just in reach for a ~45 percent gain. Learn more over at The Technical Breakout Trader.
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