Stock Watch (June 23- 27, 2008): PSEi, BPC

PSEi (Chart: Daily Resistance: 2650/2710 Support: 2510/2300)

The index is still trading in a downward channel and still no signs of reversal. As of current, the index is unable to move past the previous support-turned-resistance line from 2003. Trading strategy would be to remain on the sidelines for now.


BPC (Chart: Daily Resistance: 1.46/2.85 Support: 0.80)

BPC has been on a nose dive since the start of the year. It has been on a very bearish move as it lost more than half of its value within a month. Based from the charts, it can be noted that BPC’s downward move can be attributed to the break down from a head and shoulder formation or probably a break down from a symmetrical triangle formation. Either way, the target price of the break down is at 0.80. This is just an approximation of how low it can go, but it may move lower. This is definitely a stock to be avoided for now. Judging from the consecutive sell down of this stock for the past 4 weeks, I can say that a rally may be seen in the coming days, as the RSI is currently very much oversold.