Chart of the Week - Robinson's Land Corporation

Short-term Traders/Tsupiteros:	Medium-term/Position Traders:
Support - 11.75 to 12.00	Support - 10.00
Resistance - 13.00	Resistance - 14.50 to 15.00
Trend - Up	Trend - Up
Recommendation - Take profits but Buyback if Support Holds	Recommendation - Hold

Robinson's Land Corporation (RLC) was very strong last week on the back of news that the Real Estate Investment Trust (REIT) law would soon be passed into law. However, the question is, at current levels, has the news been discounted by the market already?

The monthly and weekly charts of the stocks shows that, while the stock is still quite strong, it is already trading at a relatively high level. The monthly chart shows that its prices are now trading at its 50% Fibonacci retracement at 13.00. If you look at its weekly chart, the stock is now approaching its medium-term resistance at 14.50. Can the stock continue to climb up from here? Sure but, from current levels, I probably wouldn't be too greedy anymore. Remember, the stock had a very deep correction from 22.25 to 3.60. Usually, a deep correction would only result to rebound back towards its 38.2% Fibonacci retracement. The fact that it already climbed back up towards its 50% Fibonacci retracement is already quite a feat. From the way I see it, a rally towards 15.50, which is it's 61.8% Fibonacci retracement may be hard-pressed already. But I guess, for those who use a buy and hold strategy, you may continue to hold as long as the stock continues to hold above the psychological 10.00 level.

In the short-term, you can see in the chart above that the stock had had a pretty good run in the last few days from 9.70 to 13.00. I would presume that this strong upswing was because of two things: first is because of the REIT law; and, second, the whole market became very strong. If you noticed the stock appears to have hit a brick wall at the 13.00 level. It's trying to hold above 12.00 but I would presume that the stock would correct back down from here, unless proven otherwise by the market. In my opinion, it's behavior in the last few days, may indicate that the news on the REIT law have been discounted by the market already. Thus, for prices to go up from here, either the entire market will have to go up, or, the entire property sector will have to go up.

So, how do we trade this stock? For Position-traders, I would recommend to just hold and use a break below the 10.00 level as your mental stop. I would hesitate to buy it at current levels though cause it is already relatively high. I may suggest to buy it though if prices correct back down near 10.50 to 11.00. As for Tsupiteros though, I wouldn't blame you if you already took profits from your positions in this stock in the last couple of days. However, I would look to see if prices are able to hold above the 11.75 to 12.00 levels. If the stock does not break below those levels in the last one to two days, I may recommend to buyback your positions already. If the stock holds above 11.75, next short-term target may already be the 14.50 level.

In summary, while I am still bullish on this stock and I am not discounting the possibility that the stock will continue to register new 52-week highs from here, the medium to long-term resistances of this stock may start posing as an overhang for this stock as it continues to go up since some of those who got stuck with this stock in the last two years may begin to sell. I guess this is the same exact situation we have for the entire market.

Short-term Traders/Tsupiteros vs. Medium-term/Position Traders: Recommendation for short-term traders or Tsupiteros are meant to be used by traders whose holding period are limited to one day to two weeks. Medium-term or position traders are meant to be used by traders whose holding period are two weeks to three months. Long-term investors whose holding period is more than three months should not follow these recommendations.