StockWatch (Dec 18-22) JFC, FLI, AT, APX/APXB

JFC ( Chart: Daily Resistance: 41/42.50 Support: 39)

JFC was initially forming an ascending triangle last November, but this was invalidated when the price gapped down. But the price later bounced with good volume. Considering that the bounce was accompanied by good volume, lots of traders are holding this stock at 39.50-41.50 level, which now provides a good level of support. The downward move during the last 3 days of trading were not significant compared to the volume on the upward move from the 39.50 level. For the coming week, there is a big possibility that price would move sideward or down (to 39.50) for a short time and then would push up to resistance level of 41-42.50. Recommendation: Range Trade. Buy if incase the price moves down near the support level (39-40) and volume is not substantial (below 600T trades). Sell if incase support level at 39 is breached with substantial volume (1M trades) or if resistance level of 42 is reached without substantial volume.



FLI ( Chart: Daily Resistance: 1.90 Support: 1.82/ 1.74)

FLIis has reached 1.90 level, the previous high last May bull run. It re-tested the previous high but was unable to break the resistance. For the coming week, FLI may move sidewards to down before trying to re-test the resistance at 1.90. If resistance is broken, there is a possibility that price may reach beyond 2.0 level. Recommendation: Wait, price may still go down below the support at 1.82. Any move below 1.82 support with less volume is a buy. Sell at 1.90 if move upward is not supported with volume. If move upward is supported with good volume, hold till it reaches 2.0 or beyond, then sell.


AT ( Chart: Daily Resistance: 9.80/10 Support: 8.80)

Watch out for AT, probably forming a flag/pennant. Recommendation: Wait for the pullback probably near 9.50 level. Pullback should have diminishing volume.


APX ( Chart:Daily Resistance: 6.20 Support: 6.0)

APX and APXB is poised for a bounce from the support. Recommendation: Buy at 6-6.50 level. Observe the volume, APX exhibited unusual volume last Friday, but the same did not happen for APXB, but nonetheless, do observe if the bounce is accompanied by good volume (greater than 4M trades)

In Retrospect : BPC, ABS, ABSP, PLTL

BPC

On last analysis, an island reversal formed but this was invalidated by a large volume by Dec 7 which propelled price way beyond resistance and gapped up twice. Price is currently consolidating, probably for another push upward.

ABS/ABSP

The target price of 21 was achieved. Currently consolidating between 22-20 level. There is a good possibility of price to reach 23 and beyond.

PLTL

The ascending triangle was invalidated as price went down to as low as 5.70. It currently was able to break 6.20 with good volume, but the last day of trading it went down and re-tested the 6.20 resistance. Currently a buy recommendation

StockWatch (Dec 4-8, 2006) BPC, ABS/ABSP, PLTL

BPC (Chart: Daily Resistance: 1.92/1.80 Support: 1.70)

This stock formed an island reversal. Price is bound for another short move upward, but may fail to break the resistance. Recommendation: Sell near resistance

ABS/ABSP (Chart: Daily Resistance: 23 Support: 19/18.50)

ABS/ABSP has formed similar patterns, possibly a falling wedge. The falling wedge may have a target price of 21. But this is not the only important thing to note for this stock. The formation of a falling wedge is a good sign that the price movement is taking a breather from the move up. Which means price can move higher than the target price at 21. Hopefully, a good support will be formed in the price level of 18.50-19 Thing to watch out for is for the bulls to break the resistance at 23. If it is not broken, the sideward movement may take over the bullish sentiment. Another thing to watch is the support at 65 day MA(red line), if this is broken, the falling wedge may be invalidated and this may be a sign of further bearish events to come. Recommendation: Buy if support holds

PLTL ( Chart: Daily Resistance: 6.20/6.10 Support: 5.90)

PLTL seems to be forming an ascending triangle, but a couple of blocking factor may deter the formation to be validated. The last day of trading brought the price back up to the resistance at 6.10, but the volume is not significant. The 2 day downward movement has more significance as it was accompanied by significant volume. At current, the near by resistance at 6.10 needs to be broken and close the gap. But current MACD might be an indication that this may not materialize. Recommendation: Sell for the moment. Wait for further movement before buying.

In Retrospect: MEG, JFC, VUL, WPI

Checking on the previous week’s analysis

MEG

The price went down as low as 1.96 and rallied up again for two days. The descending triangle that is in its early formation is invalidated by the increase in volume during the Nov 28 downward movement. This downward movement further established a new support. Currently MEG is still a stock to avoid as the MACD is still in a bearish stance. If the price at 2.30 is not broken and instead a new lower peak is formed, it is a further confirmation of the bearish move.

JFC

The Nov 28 downward movement invalidated the ascending triangle being formed. But this downward movement established a support level at 39. Interestingly, the upward movement on the last day of trading during last week was accompanied by high volume, which increases the holders at 39-40 level, providing a strong support in those levels. Though MACD is still bearish, I believe that because of the increase in volume prices may start to move up, possibly trying to re-test the resistance at 42.

VUL

The pole formed for two successive trading days was followed by a flag formation, but was unsuccessful at breaking the resistance. Further correction may still follow as stock is already overbought.

WPI

The ascending triangle formation failed and broke the support. The MACD is now in a bearish stance.