PSEi (Chart: Daily Resistance: 2760/2800/2876/3019 Support: 2650/2613/2570)
The index had a very good bullish action last week. I was expecting the index to buckle to selling pressure last week as RSI is near overbought, but it kept on moving upward. A gap up also happened last week breaking the 65 day MA resistance as well as the previous high of 2650, this was accompanied by a very large volume. Although there was significant market action from the previous days, there are still a couple of resistances that the index would have to deal along the way up. An upcoming resistance level is the broken support line from an upward channel extending from 2003 (2760). Next is the 130 day MA (2800), followed by broken support neck line of the double top formation last year (2876), and last is another broken support line from a down channel (3019). Since the correction did not happen last week, expect that the correction may happen anytime within the coming week. We are currently seeing an increase in volume for the past days, hopefully this is sustained for the coming weeks so that the index may clear those resistances.
DGTL (Chart: Monthly Resistance: 1.60 Support: 1.26)
I noticed that zooming out and looking at the Monthly charts for DGTL shows a very good cup and handle formation. The handle has a resistance or breakout point at 1.60 and has a TP of 2.70. However, since we are looking at a monthly view of the chart, this break out may not happen for atleast another 1 to 3 months. For those going long, this is a good stock to get into.
AC (Chart: Daily Resistance: 320/352.50/380 Support: 305)
I never thought that AC would break the neckline of a double bottom, but it did and trading last week also saw a gap up with volume. Target price for the double bottom is at 325. The only problem that is bothering me for this stock is that there isn’t enough volume on breakout of the double bottom. Hopefully volume for the coming days would pick up. Next resistance is at 320 which is the 130 day MA then followed by 352.50 which is the previous high. Correction may happen this coming week, so for those who would like to get in this stock, this would be a good opportunity. For the next trading days, watch out as there may be a possibility of a bigger inverse H&S formation. The left should formed in between April to June, if the resistance at 352.50 holds, then this may be the formation of the neck line of the inverse head and shoulder formation.
MBT (Chart: Daily Resistance: 41 Support: 36)
The positive divergence seen previously for this stock materialized into a break from the downward channel. Aside from the break out from the downward channel, the stock also managed to move past the 65 and 130 day MA. There was sufficient volume on breakout of the channel. However, succeeding trading days where a white candle can be found has lesser volume. What I am hoping to see is more volume on white candles. Currently, the stock is overbought and there is a possibility of a correct for the coming week, this would be a great opportunity for getting into the stock. There is a possibility that an inverse head and shoulder may be forming. The left shoulder formed in between April to June. If the resistance is strong at the current level, then it is possible that we may have formed as neckline. The left should is still to be formed so watch out for this.
4 comments:
what happened to the other one?
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Thanks to the blog owner. What a blog! nice idea.
dude (or dudette :P) have never commented on ur site. but would just like to say, pls keep up the good job. very informative and it's always nice to see a hands-on person looking at a few stocks and really giving in-depth explanations. more power!
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