In Retrospect: PAX, JFC, DGTL

PAX

PAX moved with the market last week, going to as high as 14. A short upward move and sideways movement characterized its price action. However, we could see that even if there had been an upward move for this stock, it has consistently closed lower than the opening price. This means the bulls are still overpowered by the bears trying to sell the stock. Also the volume is still lethargic, which means there aren’t enough buyers. If this goes up and is able to close the gaps without a significant increase in volume, then this means the upward move was just superficial. Watch out for price levels 14.25 the lower end of the gap, 15.25 higher end of the gap, 16.25 and 19.00 the 23.6% and 38.2% Fibonacci retracement price levels. One good thing to note for this stock is that the MACD is positioned to cross above the signal line. It’s a wait-and-see if this cross above the signal line would attract more volume. Still be on the look out for the formation of an island reversal pattern.


JFC

The trough that we are waiting is now formed and this means that our positive divergence is confirmed. This stock went to as high as 53 with sufficient volume. However, the 2 MA’s are currently blocking its way and has proven to be strong resistance. Price may move sideways to down for this week. It may go to as low as 49 which is its previous low or beyond.

DGTL
The positive divergence is also confirmed for DGTL as the trough has formed. However, the upward movement of the stock was not accompanied by volume, which means its sideways movement for this stock for now until it’s able to get more volume. Any further upward move without sufficient volume may not be good enough to break out from the downward channel that it is currently in.