Cebu Holdings Inc. (stock symbol: CHI) is now facing a crossroad as the stock closes in on the 5.00 psychological level, an area that has kept CHI afloat for the last nine months.
The short-term descending trendline has kept the bulls at bay since late-December, hence the pressure mounts for a short-term trend continuation to the downside.
Resistance sits at 6.00-6.80. A break of 5.00 would risk a move to 4.00 and 3.70, the 2-year low set on January 23, 2013.
The Money Flow Index (MFI) remains battered. It trades in the low-20s as of today.
TP’s Advice: Be careful of this stock. Watch price action around 3.00-5.00 (assuming price will decline in the coming weeks).