StockWatch (April 30 – May 4, 2007): WEB, DMC, IPVG

WEB (Chart: Daily Resistance: 0.048/0.050/0.0525 Support: 0.046/ 0.044)

WEB is forming a symmetrical triangle. Price movement for this week may either move side to upward. This is very eligible for range trading. Recommendation: You could trade the range for this stock. Buy at 0.048, sell at 0.055. Watch out for resistance at 0.050/0.0525. Cut loss at 0.046.

DMC (Chart: Daily Resistance: 7.40 Support: 7.10)

DMC is forming a symmetrical triangle with target price at 8.90. Recommendation: Buy only on breakout. Price may still move side to downwards. Currently 65 day MA is providing support. Keep a close watch for this stock as breakout may happen this week. If the 65 day MA is broken downwards, expect a move further down to 6.90. If the price moves sideways for this week, we can redraw the support line and see if the symmetrical triangle is still intact.

IPVG (Chart: Daily Resistance: 7.10 Support: 6.40/6.30)

IPVG’s support was redrawn, and the ascending triangle is still intact. Price action may still move side to downwards. Recommendation: 6.40 is a good level to buy, but also watch out for dips to 6.30. Cut loss at 6.00

In Retrospect: TBGI, MIC, GEO

TBGI broke the 2.50 resistance but was only able to move up to 2.55 before moving downwards. The price was blocked by the 130 day MA and moved to as low as 2.30. The symmetrical triangle is still intact and the MACD has now crossed above the zero line. Price action may move side to down this week probably a chance to get the stock near support level of 2.14. Recommendation: Watch out for support at 2.26 (65 day MA)/2.14 (trend line), these are levels where it would be good to buy. Cut loss if it goes below 2.10

MIC consolidated on the first 3 days of trading with 3.15 as resistance and move higher on the fourth day up to 3.60. The last day exhibited profit taking as the price went from 3.60 down to 3.30 closing at 3.40. Next resistance is at 3.80. There was no follow through with the volume after the breakout. RSI is currently overbought, so expect for the stock to move side to down. Recommendation: Sell a part of the position and buy back at a later time if the price moves down. MACD still looks good, so if RSI goes down from being overbought with price still moving sideways instead of down, start buying back. The next resistance at 3.80 is the target price for the Feb-April ascending triangle.


GEO went further down to as low as 1.76.

StockWatch ( April 23-27, 2007): TBGI, MIC, GEO

TBGI (Chart: Daily Resistance: 2.50/2.90/3.35 Support: 2.24/2.14)

TBGI broke out from a sidewards movement with very high volume. If the upward movement would still continue, it may break out from a symmetrical triangle with resistance at 2.50. The target price for the symmetrical triangle is 4.15. Recommendation: Buy on breakout. Expect resistance at 2.90 and 3.35 level. If you buy at 2.60, cut loss is at 2.40.

MIC (Chart: Daily Resistance: 3.15/3.40 Support: 2.60/2.44/2.30)

MIC has broken out of the long symmetrical triangle. Conservative target price is at 4.90/5.0. Next resistance is at 3.15 and 3.40, which are previous highs. Recommendation: Buy. Succeeding trading days should have the same or higher volume; otherwise it may find it hard to break the coming resistance levels. If upon reaching near resistance level, price movement shows weakness, sell a portion a buy back at a lower level.

GEO (Chart: Daily Resistance: 2.14 Support: 1.90)

GEO is displaying a divergence of MACD from the price movement. MACD displayed lower high, while price displayed a higher high. The recent break above 2.0 with less volume seems to indicate that not a lot are interested with the stock at that price level. Recommendation: Sell.

In Retrospect: IPVG, SM, DGTL

IPVG

Support at 6.40 held only up to Wednesday’s trading and went down to 6.30. But on the last trading day, price went back up. As of current, the ascending triangle is still intact. We still have the coming week to see if the dip to 6.30 was just temporary or if resistance at 7.10 will be broken this week. Recommendation: Hold. If price proceeds to move up, watch the volume at 7.10. Breakout volume should be more than 10M shares traded.

SM

SM broke down from the support line and went as low as 347.50, below the 65 day MA. Recommendation: Buy only on breakout. Although the ascending triangle is still intact, there is still a possibility that price would just move in a range between 347 and 375.

DGTL

DGTL broke out without volume. Price action did not even reach 1.90 as the 65 day MA already blocked its move up. Recommendation: Sell. There is a higher possibility of price to still move downwards.

StockWatch (April 16-20, 2007): IPVG, SM, DGTL

IPVG(Chart: Daily Resistance: 7.10 Support: 6.40)

IPVG seems to be forming an ascending triangle with resistance at 7.10. Target price for this ascending triangle is 9.10. Recommendation: Watch out if price continues to move down. Buy if the support at 6.40 holds.

SM (Chart: Daily Resistance: 375 Support: 360)

SM is forming an ascending triangle with TP at 425. Recommendation: Buy only on breakout at 380, cut loss at 370.

DGTL (Chart: Daily Resistance: 1.76 Support: 1.70)

DGTL is forming an ascending triangle with resistance at 1.76. Target price is 1.96. If it breaks out, it needs to take out the 65 day MA and the gap down at 1.90. Recommendation: Buy on breakout. Watch out for resistance at 1.90 if it breaks out without volume.

In Retrospect: ELI, ABA

ELI

ELI just touched the resistance at 0.88 and fell back retracing 30% of the move. Price will still move side to downwards this coming week. Target is not yet reached. Currently 0.83 is providing support.

ABA

After a successful breakout, price went back below the support level of 0.016. Currently 0.013 is providing support.

StockWatch (April 10 – 13, 2007) ELI, ABA

ELI (Chart: Daily Resistance: 0.88 Support: 0.79)

ELI might have broken out of a symmetrical triangle. Target price is 0.93. The triangle is a little bit odd, but I’m banking on the high volume and the MACD crossover for it to break the resistance at 0.88 and hopefully close the gap. Recommendation: Buy near support of 0.79 -0.83. Cut loss at 0.78. Watch out for resistance at 0.88.

ABA (Chart: Daily Resistance: 0.0174 Support: 0.016/0.015)

ABA seem to have broken out of a rounding bottom. Target price is 0.025. Recommendation: Buy. Watch out though if the price movement consolidates to form a cup and handle area pattern

In Retrospect: MEG, MIC, MBT, AJO

MEG broke out of the ascending triangle with significant but insufficient volume. The valid break out volume should be at least 200M shares traded, the actual break out volume was around 70M shares. Even though the stock did not have a valid breakout, it remains bullish according to the MACD. Need to watch out though, as the stock’s price moves higher creating higher highs, the MACD also needs to create the same thing, otherwise, we might be seeing a divergence of price and MACD. Recommendation: Hold until the divergence is confirmed, if the divergence is confirmed, start selling on rallies.


MIC traded sideways this week. The 2.40 price level held its ground. The stock may still move sideways to downward this coming week. So still watch out for 2.40 and 2.30 levels for buying opportunity.


MBT price movement went sideways last week. Target price is still not reached. A noticeable event last Wednesday’s trade is that volume picked up significantly to 6M shares traded. Hopefully the increase in volume will help in closing the gap between 63.50 and 66. Recommendation: The stock can still be bought at the 62-63 price levels.


AJO H&S pattern is still intact. We are still waiting for the break of the neck line. Currently, the 65 day MA at 0.70 seems to have provided a temporary support for the price. MACD still doesn’t look good, but price may still have a temporary sideward to up movement delaying the downward move. Recommendation: Sell on rallies.