StockWatch (Nov 05-09, 2007): PSEi, DMC, AJO

PSEi (Chart: Daily Resistance: 3800 Support: 3680)

The index gapped down on the first trading day after the Glorietta 2 blast. The previous falling wedge that I was expecting to form was invalidated by the gap down. Currently the index was able to cope with the gap down and has now covered the gap that was made. The gap down that happened seem to have made a symmetrical triangle formation with the index. Index at 3,800 is currently the resistance and support at 3680. Upside target for the symmetrical triangle is at 4100, the downside is at 3380. There is still a high possibility that we may have to redraw the triangle or it may also be invalidated. It's still a wait and see for our index considering that the Dow has recently suffered another 200 points down last week. Plotting the Bollinger Band on the chart, it looks like a move will occur anytime soon as the bands are constricting

DMC( Chart: Daily Resistance: 12 Support 10.75/10.25)

DMC broke out of the ascending triangle during the 2 trading days last week. Target price for the ascending triangle is at P13. At the current price level of 12, it is already very risky to get in. There may be profit taking next week as some may lock in their profits at P12

AJO (Chart: Daily Resistance: 0.15/0.17 Support: 0.13/0.12)

AJO broke out of a symmetrical triangle. Upside target of 0.21. Resistance at 0.15 and 0.17 which are the previous highs. Support at 0.13. Sell when it goes to 0.12. This means weakness in the breakout if it moves to 0.12