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Monday, August 04, 2008

StockWatch (Aug 05-08, 2008): PSEi, DGTL

PSEi (Chart: Daily Resistance: 2620/2650/2715 Support: 2507)

Looks like the index is having a hard time moving past the 65 day MA. Trading last Thursday saw the index close lower with larger volume. Succeeding trading after that only had small volume. Also given the current RSI level, the index is near overbought and we may see some correction within the week. Watch out for support at 2507, as long as the index respects that support level, the index is still in a good condition. The support at 2507 is one of the points in the support line connecting the troughs in July. Almost all of the stocks currently are having a hard time moving past their 65 day MA’s, so it would be best to lock in the profit for today.


DGTL (Chart: Daily Resistance: 1.46 Support: 1.22)

DGTL seems to have formed a rounding bottom, but we may not be able to see a breakout for the coming days as the RSI is now very much oversold. It is good to observe this stock for the coming days, as this may transform into a cup formation. The stock is currently consolidating as seen in the 3 MA’s. It is also worth noting that the stock stood its ground when the general market was being battered. It did not continue moving lower than the support line. So if you are going long on this stock, current price level is already good as it is near the support line from extending from 2004.

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