Emperador Incorporated (stock symbol: EMP) has continued to trade within the consolidation area between 10-13 since early-October. However, the recent downside gap and volatility has brought Emperador closer to the lower part of this range.
11 is the near-term line in the sand. Assuming price will break out of this range, the next in line are 8 (support) and 17 (resistance).
It’s best to avoid this stock for now. Risk will decrease once EMP advances through 13 and stays above it.
The Commodity Channel Index (CCI) has stayed above the zero level along with the recent bounce in price.
By the way, as a result of the recent PSE review, a PSEi recomposition will happen in which EMP will replace PX in the PSE Index starting September 15.
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