PSEi (Chart: Daily Resistance: 2176/2292 Support: 2080)
The index experienced a temporary relief during the beginning of last week, but this was capped by the resistance near 2270 and the index again fell and created a big gap. As of current, the index is still respecting the support line formed from August of 2007 connecting the trough of July 2008 and recently also connecting the last 2 week’s low. This week will be the judgement week for that support line to see if it would still hold.
There is currently a manifestation of a possible double bottom. But this double bottom may be a reversal only for the short term trend. Its neckline is at 2176, with a possible target price at around 2500. If the support line is broken, then the possible double bottom will be invalidated.
Still, there is no clear reversal for the current bear market. The MACD is still below the centerline so this means hold only for the short term. The market is still very much oversold, a lot of stocks are still below the RSI 30, so there is s higher probability of another short rally by this week.
GLO (Chart: Daily Resistance: 980 Support: 820)
GLO just recently turned very bearish as the standing support line connecting the troughs from 2002 was broken with large spread and good volume. The support line was initially tested last Sept 2008 and it stood its ground. Two weeks ago, it was again tested and broken with significant volume. The stock was able to rally for a short time and moved above the support line, but went further down last Thursday and Friday again with big spread and good volume. The break down that happened last week is further confirmation of the breakdown that happened 2 weeks ago.
The next support for this stock is at 820, which is the previous low from around June of 2006.
DGTL (Chart: Daily Resistance: 1.28 Support: 1.12/1.10)
Looks like all communications are down from the current bear market storm. DGTL, like GLO also broke down from its standing support line since 2002. The symmetrical triangle that I was previously so much hoping to breakout, went down instead. Its official, DGTL, GLO and TEL are all in the very bearish region. TEL broke its support line since June. PLTL is the only communications stock that still hasn’t broken its support line from 2003, although, it has already broken its support line from 2006. (See chart below)
Next support line for DGTL is at 1.10 which is a previous low from 2007.
PLTL (Chart: Daily Resistance: 7.40 Support:6.50)
PLTL unlike TEL,GLO and DGTL still has a long way to go before breaking the support from 2003. But it has already broken support from 2006. Compared to the other telecoms stock, I can say that PLTL still has hope amidst the bearish market, but, were still not out of the woods, so let’s further observe the movements for this stock. Next support for this stock is at 6.50 which is a previous low.
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