StockWatch (March 17, 2006)

JGS (Chart:Daily**Support:4.90**Resistance:5.20)

This stock is very promising. When I got to look at this chart’s “story”(as what my TA lecturer had said, you have to look at the chart’s story to better understand it), it was a story of an immediate fad, a falling star, a flat liner and now…. it looks like it’s redeeming itself back. The stock slowly started its revival from flat lines last year, 2005, with a spiky behavior. For this year it looks like a time for the revival of its 1993 glory. Since the start of this year, the stock has been very bullish for many reasons: 1) the stock was able to break above the 3 MA’s. 2) MACD has since been moving above the zero line 3) even if the MACD’s daily chart has crossed below signal line, the MACD for weekly and monthly says otherwise, so the cross below the signal line looks like it is temporary. Another good thing about this stock is that it looks like it is now forming an ascending triangle and currently testing the support level of the upward channel. If and when the support holds, we can expect a price movement up to the 5.20 level and maybe a breakout at that level. If a break out at that level occurs, our price target is 6.10, buy at 5.30 and cut loss at 5.10. For now lets wait for that break out to occur.

SMPH(Chart:Daily**Support: 7.90 **Resistance: 8.10)

Need I say more of this stock? All we are waiting for is a good breakout of the symmetrical triangle at 8.10. We need a very good volume at 8.10 for the breakout to occur. Last Thursday and Friday’s trading had insufficient volume at the breakout level, so the expected breakout has not yet occurred. Looks like next week would be SMPH’s week. Our price target is at 9.60, buy at 8.20, and cut loss at 8.0. If the breakout occurs, 9.40 would be a good level to sell if you’d like to be on the safe side.



MWC(Chart: Daily**Support: 6.40 **Resistance: 6.50/6.60)

This stock also looks very enticing. We now have a symmetrical triangle formed with MACD above signal line and above zero line, which is a bullish indicator. In addition to that we also have the price currently above the 2 MA’s. This stock has had a problem breaking above the 2 MA’s previously, so at current level it is a welcome change in behavior. We just hope that the 6.40 support would hold for next week. Expect that next week would be an accumulation phase should the 6.40 support hold. Breakout may occur in the very near future, but there is still a possibility of it trying to pull down to the 6.30 level.