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.