PSEi (Chart: Daily Resistance: 3050 Support: 2777)
The index is still very much volatile as the index moved lower last week reaching a possible support at 2777. The trough that formed last week did not hold and index also penetrated the trend line from Feb 2008. There is a possibility of a double bottom if support at 2777 holds. Otherwise we may see the index move towards another possible support near 2660, which is the trend line connecting the troughs from 2003. There is a possibility of a rally next week.
AT (Chart : Daily Resistance: 14 Support: 12)
AT has been amazingly making good upward progress for the past 2 weeks. There seem to have formed a double bottom area pattern for AT with the neckline at 12. Last Thursday that neckline was broken reaching to the highest of 12.75. The breakout volume was also significantly large. Other good thing to note about the chart: A.) The MACD is now above the center line which is a bullish indication. B.) The price is now also above the trendline connecting the peaks from May 2007 which means that the stock is possibly out of the downward trend. C.) Price was able to move above the 65 and 130 day Moving Average. The not so good about the chart is that the RSI is now on the overbought area. The target price for the double bottom formation is at 14.50. This stock is currently a buy because of the breakout from the double bottom. But still be cautious in trading the stock, as it has been moving upward for the past 2 weeks and the RSI is now overbought. Trading last Friday saw the stock being sold down to the support at 12. This selling was accompanied by large volume, which is nearly half of the breakout volume. There is still a possibility of a bull trap for this stock if it breaks the support at 12
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