PSEi (Chart: Daily Resistance: 3330 Support: 3120)
The index encountered resistance at around 3100-3300 level, trading was characterized mostly with short bodied candles with long wickers. Currently, the index was able to reach the resistance line and closed just below it. Expect trading next week to move sideways to downward. Support currently is around 3120.
GLO (Chart: Daily Resistance: 1610/1675 Support: 1495/1465)
GLO had a breakout from the symmetrical triangle, however, the volume was not that sufficient to consider a good breakout. Watch out for upward moves with low volume, this indicates weakness of the upward move.
EDC (Chart: Daily Resistance: 6.30/6.70 Support: 6.10/5.70)
EDC gapped up last Friday with large volume, however, there was no area pattern involved in the gap up. Currently, it was able to move past the 260day MA with volume and looking at the weekly chart, the stock has been moving upward for the past two weeks with sufficient volume which suggests there is strength in its upward move. As of current 6.30 is a crucial resistance to observe, this is the resistance line formed during the stock’s downward move and at the same time the 50% Fib retracement level. If it is able to move past this resistance line with volume, then this suggests that the stock is now out of the recent downward movement. Also watch out for resistance the Fib retracement level 6.70 (61.8%).
MBT (Chart: Daily Resistance: 43/47 Support: 39.50)
MBT broke down from an H&S pattern with a downward TP of around 31. Currently, the stock is showing signs of bullish divergence; however, this is not yet confirmed as the trough for the RSI and MACD is not yet fully formed. Also a falling wedge is forming with a possible TP of around 55. If traders are bullish with this stock, the downward TP of the H&S may not be reached and it is possible for falling wedge breakout. For now just wait for the breakout from the falling wedge or the confirmation of the bullish divergence. Falling wedge breakout is at 44.
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