PSEi (Chart: Daily Resistance: 3250/3300 Support: 3170)
The index’s chart still doesn’t look good for now. It’s now somewhat dangerously forming a descending triangle with support at 3170. If the index is still unable to move above 3300 resistance, this gives the impending descending triangle formation more credibility. Looking at movement of most stocks, some are still in consolidation while some are still on its downward move. A few have been moving upward and against the prevailing bearish sentiment, so it is more probable that the index might have a hard time moving past the 3300 resistance level. So for now, strategy is still keeping short positions or just staying on the sidelines to be safe. If the descending triangle does materialize, its probable TP is around 3000.
JFC(Chart: Weekly)
JFC (Chart: Daily Resistance: 52.50/53.50 Support: 51/49.50)
JFC had a breakout from a downward channel last week. Considering the small channel formed, the TP is around 56, if the larger downward channel is considered, the TP is around 60. The volume on the break out is very large that comparing the weekly volume, it has surpassed the average weekly volume of around 3-5M shares traded. Now with that large volume, it is suggesting that momentum is starting to pickup with this stock. Looking at the MACD, on the daily chart, we have the MACD moving above the zero line and above the signal line, looking also at the weekly chart we can see that the MACD is just about to move above the signal line, both suggesting a very positive outlook for this stock. As of current 52.50 is a resistance that needs to be taken out, then afterwards 53.50. If the stock surpasses the 53.50, it is now out of the general downward move since April of 2007. Possible area patterns forming are ascending triangle and a head and shoulder formation, both having a resistance at 52.50 and possible TP of above 60. It is possible that the price action may re-test the resistance-turned-support line at around 49.50-50.00. For those who can absorb the risk, you buy near support at 50, cutloss it if goes to 49. Or for those who are risk averse, buy on break of the 52.50 resistance.
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