PSEi (Chart: Daily Resistance: 2070 Support: 1890)

Last week the index formed a higher low. It was something that I though would be good, however the succeeding trading days had very low volume and I would guess that the higher low that was formed may not be able to handle selling pressure when it happens.

The current resistance near 2070 is still a problem for the index and from the looks of the chart the index is moving is a tight range between 1890 and 2070, probably forming a small triangle formation before making another move.

There are still no signs of reversal. The MACD is opening upward which indicates bullishness for the short term, but it is still below the center line. RSI is still on the oversold side and it looks like it going to take some more time before it is able to move above the 50 level.
Usually in a bearish market, the MACD will not be able to immediately move past the center line. It would usually take some time at re-testing the center line before being able to move past it. And from the looks of the MACD, it is just half way thru its course to re-test the centerline.

MEG (Chart: Daily Resistance: 0.85 Support: 0.59 )

MEG is either forming a double bottom or a descending triangle. The neckline for the double bottom is at 0.85, while the support line for the descending triangle would be at 0.59. If the double bottom does materialize, then it has a target price of around 1.10. The descending triangle on the other hand has a target price of 0.30. The spread for the breakout of the double bottom is very small, but it would be good because it means this stock may have found bottom.



General Note: A lot of other stocks have the same chart as MEG having a possible double bottom formation (e.g. AC). But the neckline is near the support line so possible spread for the breakout is also small. It would be best to just observe where this would end.