CEMEX BREAKS OUT FROM RESISTANCE | Marvin Germo

CEMEX BREAKS OUT FROM RESISTANCE

By: Marvin Germo | January 20, 2019

Cemex and its downward move!

Cemex has been battered from 11 to almost 1. The stock has been dropping because of poor fundamentals, declining earnings and some quarters where they reported negative earnings.Here’s how the stock looked when it broke down last February 2017.

Catch me in my live training events! (quick plug)

The heart of why I do this seminars is I want to build a generation of Filipinos with the right foundation in stock investing.  I want to bring smart investing to every Filipino around the world! If you would like to know more on how you could time the market checkout the trainings below.

Stock Smarts Qatar —  February 5 – 10, 2019
Make Money, Grow Money (Manila) – February 13, 2019
Stock Smarts Manila —  March 9, 10, 16, 17 & 23, 2019
Stock Smarts Cebu —  April 6 & 7, 2019
Investing Insights Japan – April 13, 2019
Stock Smarts Singapore —  May 18 & 19, 2019
Stock Smarts Iloilo – July 6 & 7, 2019
Stock Smarts Cagayan De Oro – July 20 & 21, 2019
Stock Smarts Hong Kong – August 11, 2019
Stock Smarts Taiwan – November 2, 2019

What does the charts say? 

From a technical perspective, the stock formed a support a 1.6 which has been protecting the stock for more than two months now.

Resistance at 2.15

A resistance was evident at the 2.15 range as the stock failed to breakout from the 2.15 early 2019. Which would have been a quick sell for quick traders. The resistance at 2.15 was formed from the breakdown of the stock from October 2018.

The breakout

Last January 18, something happened to Cemex where the stock broke out of not just the 2.15 resistance but also the 2.30 resistance. Because of this breakout the stock is now poised to attack the resistance at 2.80 – 3. If you are a quick trader, the condition for this breakout to continue is that the the new supports at 2.15/2.30 must hold. If the stock drops below this ranges then the breakout condition to 2.80 – 3 will not stand.

Position Trading

If you are a position trader, stay away from the stock first as it has not fully reversed and is still in a longer downward bias. A full reversal at this point will come from a breakout and its ability to stay above 3. That’s when you start coming in.

Fundamental Investor

If you are a fundamental investor, stay away first as the numbers have not fully reflected a turn around in its business. The company still has declining earnings and still has not shown massive earnings to date that is super impressive. If you want exposure to the cement business, Eagle cement is still better.

Here’s some video snippets on the fundamentals of Cemex:

Cemex at 7 Pesos May 2017

 

Cemex below 4 Pesos March 2018

 

I’m excited to share my 5th book overall and the 4th book in the Stock Smarts series, Stock Smarts: Breaking the Resistance – How to time your traders perfectly. The heart of this book is to teach you strategic ways on how to come in and buy and sell stocks in a way where you come as the market is headed up and come out as the market is headed down. The book is now out and exclusive via Marvin Germo Book Orders.
For more details and to order my other books: Marvin Germo Book Orders
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