StockWatch (Dec 08-12, 2008): PSEi, SM

PSEi (Chart :Daily Resistance: 1986 Support: 1830)

Again the resistance line has proven itself to be a strong resistance line. The index was unable to move past the resistance line, and moved lower last week. Volume was very small last week. What is clear right now is that the index in moving within a symmetrical triangle. For the coming week, the support line of the symmetrical triangle will be tested.

Still there is no clear reversal pattern in the chart except for an island reversal on the previous short term upward trend. Watchout for the centerline as MACD approaches it, usually it is an area of resistance.

General Note: A lot of other stocks are similarly forming a symmetrical triangle. It is still too early for a break out or a break down, but do watchout for the progress of the symmetrical triangles.


SM(Chart: Daily Resistance: 183 Support:167)

SM is showing signs of a descending triangle. Trading last Thursday and Friday already breached the support line at 67. Things are not looking good for this stock as the sell down last week was accompanied by significant volume. For the coming week, further breach to the support line may happen.