Sleeper Play: East West Bank (EW)

I'm happy to report that FLI is now at 1.69. I'm not too happy about the steep incline and would have preferred it rise gradually. Steep inclines usually means quick exhaustion. You can use EMA 10/20 along with Parabolic SAR and Stochastics to Monitor price movement and lock in profits when you can. Or you can lock in profit already and then buy back after reversal has exhausted.
(click on the photo to enlarge)



I was about to suggest 2GO as our next sleeper play, however it has already surged up. Check the picture below. (click on the photo to enlarge)


Now, let's focus on East West Bank (EW), FLI's banking arm.
Here are the fundamentals as of Sep. 30, 2015 (3Q 2015). They have yet to release their 2015 annual report.


Although net income has slightly declined, the stock is trading near its all-time low. See the monthly chart below. (click on the photo to enlarge)


Below is EW's daily chart. (click on photo to enlarge)


You can do a test buy for now, and add more when price action breaches 61.8% fib level (or 15.79) ala Nicholas Darvas style.

Please note that the company has yet to release its 4th quarter earnings result. Lower earnings might bring the stock lower. Also, the company's Chairman Emeritus, Mr. Andrew L. Gotianun, Sr., recently passed away (rest in peace)...so it might be wise to wait until Tuesday to see how this affects the stock price before doing a spot entry.

Stop loss is set at 15.02. If price action violates this level, then SELL IT IMMEDIATELY.

Caveat and God bless!