PSEi (Chart: Daily Resistance: 1970 Support: 1850)
This is the last normal trading week for the market and it looks like the index is not about to let the year of 2008 go without a farewell break-out or break-down. From the chart, we’ve seen that the index is pretty much following the symmetrical triangle formation and it is currently 1/3 away from the apex, which means the break out or down or dissipation of the symmetrical triangle may happen within this week. Ofcourse this is a symmetrical triangle and it definitely give mixed signals like the trading action last week where rallies were accompanied by good volume, but as well as declines were also accompanied with good volume. So its anyone’s guess where the market will head for this week.
Is the symmetrical triangle a reversal sign? Well sometimes it does act as a reversal pattern. There were cases where a symmetrical triangle can be found at the top or at the bottom of the chart, signaling a reversal. But this we still have to see for the coming week. If this breaks out of resistance, target level is around 2400, hopefully easily moving past the MA’s. If this breaks down, its target level is around 1500.
Still watchout for the MACD and RSI, the index/stock usually encounters resistance on the center line and 50 line respectively during bearish market conditions.
MBT (Chart: Daily Resistance: 23.50 Support: 21)MBT is also showing signs of a symmetrical triangle similar to the index. Possible upside of up to 31 and possible downside of 13.
GLO (Chart: Daily Resistance: 835 Support 750)GLO seems to be forming an ascending triangle, but it is still too early for a breakout and anything can still happen. Just watchout for the support line, the formation of a higher low is also good news for this stock.
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