StockWatch (Jun 29-30, 2006) SMPH, MWC

SMPH (Chart:Daily ** Resistance: 7.40 ** Support: 6.90)

MACD has already generated a buy signal. What I am currently seeing is a small ascending triangle with resistance at 7.40. If a proper breakout happens at 7.50 we can see a target of 8.0, but the MA’s are currently blocking the target. If the breakout does not happen and the price moves further downward, we may expect a support of 6.90 and price movement to be sideways.


MWC (Chart: Daily ** Resistance: 7.20 ** Support: 6.90)

MWC is forming a symmetrical triangle with support at 6.90. I am expecting a breakout at 7.30 with a target of 8.0. So far, all indicators are in favor of an upward price movement: all 3 MA’s are below the current price, MACD has generated a buy signal and is currently above the 0 line. Hopefully, the support holds and we might be able to see the breakout.