PSEi (Chart: Daily Resistance: 3540/3640/3690 Support: 3380)
It was a good week for the index last week as it was able to rally after breaking just below the support line. It was also able to cover the gap down the previous week. What is very clear now is that the support line is holding very well. However, the index is still trading in a downward range and there is still no clear indication of a reversal from the downward ranging movement. The rally may very well continue for the coming week. Expect resistance at 3540 (130 day MA), 3640 (65 day MA) and 3680 (resistance line). The index is ranging, so what ever gains you have had the past week, be ready to lock-in the gains when the index starts to move down.
GLO (Chart: Daily Resistance: 1560/ 1605 Support: 1440)
The stock had a very good rally last week from the low of 1440 to the high of 1560. One very noticeable action for this stock is the formation of a bullish divergence. The stock formed a lower low, while the MACD and RSI formed higher high. The symmetrical triangle formed previously is still intact and breakout probably is around 1620. However, there seems to be another smaller symmetrical triangle that formed with resistance at 1560. A good breakout volume for the smaller triangle is at 200T. We can immediately know by Monday if this would breakout from the smaller triangle. Otherwise, if it continues to move higher without the volume, then we can expect the resistance at 1600 to hold
FLI (Chart: Daily Resistance: 1.44 Support: 1.16)
FLI seems to be forming a falling wedge. It is still too early for a break out, however we can try to take advantage of the ranging action of the market and of this stock. Buy at 1.26 and sell at 1.36, cut loss at 1.24. Risk for this trade is high, but I’m banking that the price will move higher as indicated by the Stochastics. Observe also the volume on the way up, if it is higher than 70TM shares traded, then momentum may be picking up and price may go higher than 1.36.
3 comments:
Very helpful blog. I just bookmarked it.
Anyway, I'm just a new trader. I started last week. Wrong timing, no? Guess I have to bite the bullet.
Looking forward to your next post.
Hi stlouispt3!
Glad to be of help to you. Like you, I also started at the wrong time, but I'm just taking my loss as an expensive tuition fee for being further equipped for trading. Just take small losses and learn from them. Goodluck in your trades! =)
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