PSEi (Chart: Daily Resistance : 3770/3810/3890 Support: 3680)
The index showed further bullishness as it was able to open higher on the first trading day last week. This bullishness was further supported by the 4 other actions by the index. First is the gap up that happened on Thursday, which led to the second action which is the breaking of resistance line established from the recent downward trend. The third is the closing of the gap from the first week of November and fourth is the MACD crossing above the signal line. The breakout from the resistance line is just a confirmation of the recent upward move, however it is still not a breakout from an area pattern as we do not have a valid area pattern for now. For the coming week, we may see the index consolidate in a sideward movement and may also re-test the resistance-turned-support line. The sideways consolidation is what is best for the index as it has now recovered 60% of the recent downward move from October and it still has not consolidated. Any further upward move might place the index in levels where the bulls might not be able to support.
COL (Chart: Daily Resistance: 14.50 Support: 10.50)
This stock was featured by Bonner at the Absolute Traders website. It has formed a symmetrical triangle with resistance at 14.50. Possible upside target price of 22. For those doing range trading, you can buy at 12.50, sell at 14.50, cutloss at 11.75. As of current the stock is now bullish as it has gone past the 65 day MA and MACD is now above the signal line. Average volume is around 1M, a good break out volume should be above 4M
BPC (Chart: Daily Resistance: 4.65/4.85 Support: 4.35)
BPC seems to have broken out of a symmetrical triangle formation, however I am not quite sure about the volume on breakout. It was accompanied by large volume, but I am not sure whether it is sufficient. The stock is currently re-testing the support line. What we need to see is for the volume to pickup for the coming days. Also what is noticeable in the chart is a head and shoulder formation that did not push thru. However it cannot be considered as a failed head and shoulder as it did not break down, so it is currently more of a symmetrical triangle. Target price for the triangle is around 7. MACD is bullish, but RSI is near overbought, so there might be some further re-testing of support for the coming days.
MIC (Chart: Daily Resistance: 7.50 Support: 6.80/ 5.60)
MIC is also a candidate for a symmetrical triangle. Breakout point is 7.50 Target price is 15. MACD is currently bullish and RSI is just halfway from being oversold. Average volume is around 4M, a good breakout volume is around 20M shares.
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