Stock Pick: RLC's multi pattern

Figure1: RLC two patterns

Presently RLC is forming two possible patterns: 1) Cup and Handle Pattern 2) Head and Shoulder Pattern. Among the two patterns the former is a bullish pattern while the later is a bearish pattern. But as long as the neckline of the Head and Shoulder pattern (red horizontal line) is not broken, the pattern is not yet confirm.

Figure 2: RLC Analysis

Among the two patterns of RLC, I tend to believe that the Cup and Handle Pattern is more significant. Here are my reason: 1) Both my indicator below the chart are telling me that RLC is already oversold and I should be looking for an opportunity to buy (go long) this stock. 2) Confluence of two Fibonacci lines located around P10.90 to P11.00. This indicates a major support area that is historically respected by the price of RLC. There is a big probability that RLC will bounce or reverse again at those price levels. 3) Given its fundamental value of P16.65 (COL Rating), RLC is already at a very attractive price for investors.