Regina Capital Analysis
Company: DITO CME Holdings Corp.
Support: 7.03 / 6.22
DITO extended its rally onto its sixth consecutive trading day while also notching its largest one-day climb in two months.
The nearly +10% gain pushed the RSI into the overbought region but it, along with the DMIs and the MACD, are still showing signs of increasing momentum. The +DI, -DI gap continued to widen while the ADX has yet to show any spike in momentum. The MACD, on the other hand, has increasing histograms as its bullish divergence persists.
This is DITO’s highest level in over two years, and some profit-taking may ensue in the following days. There is a relatively strong support at 7.03 though.
Meanwhile, the stock has been trading above its key short- and long-term averages for the past three months.
DITO broke out from P7.05 to close at P7.61.
We think the stock remains bullish and it might test the next resistance zones at P8.05 and P8.45 for as long as it stays above P6.69.
We recommend buying on dips near P7.05 and P6.69 with a target of P8.45 and P9.00, place a mental stop if the stock closes below P6.48.