PSEi (Chart: Daily Resistance: 2650 Support: 2507)
Looks like this is it! No, not a bull run, but a respite from the continuous downward movement by the index. The support was respected last week with the index moving higher. We now have a higher low, which is a very good sign. But that is not the only good sign we’re seeing in the chart, last Thursday, the index broke resistance at 2507 with a big spread and large volume! And it looks like the resistance that was broken was part of an ascending triangle with a possible TP @ 2710. The trading last Friday saw the index lower, however, even if it is lower, it was able to stay above the resistance-turned-support line. We will be able to confirm next week if the break will push through or whether it will buck the selling pressure and fall below the support. I am certain that this is now the start of the consolidation phase, so watchout for stocks trading within a range. For those going long on the stocks, this might be the best time to catch some bargain stocks, just look for stocks that are able to form a higher low with good volume.
MEG (Chart: Daily Resistance: 1.46/1.66/2.24 Support: 1.10/1.06)
MEG had 2 gap ups for last week, breaking resistance at 1.30. The break was accompanied by good volume and may have broken an ascending triangle with a possible TP @ 1.54. The current price level is already near the TP price, so it is quite late to get into the stock. Since the market is going into consolidation phase, it is good to observe possible peaks and troughs for this stock for a possible range trade strategy. Watch out for the 65 day MA which is also a resistance. The volume for the past 4 weeks has been good so it is also a good indication that this stock is pulling out of the bearish dive.
MBT (Chart: Daily Resistance: 36.50 Support: 30.50)
MBT has been trading within a downward trending channel. Currently a positive divergence can be seen from the chart with the price moving lower while the MACD moving higher. What made this divergence significant is that the it can be seen within a shorter time frame unlike other instances of divergence where in the time frame was wider. Watchout for the MACD of this stock as it is now near the zero line and it is possible that this may have some potential when the zero line is broken. As of current, it is not recommended to get in this stock at the current price level, a good entry point would be near support at 30.
BPC (Chart: Daily Resistance: 1.66/2.60 Support: 1.16)
BPC had a breakout from a small sideways channel. Possible TP at 1.34, however at the current price level, the TP is already near. Volume has been great at the breakout, so the support may hold if it is tested. Watchout for the 65 day MA at 1.66 as this is a resistance level. Also, for this stock, observe the possible peak and trough to determine the possible range trade strategy.
1 comment:
This was the time I was waiting for so long,thanks for informing me about it.
Post a Comment