StockWatch (Jan 19-23, 2009): PSEi, MWC, WEB

PSEi (Chart: Daily Resistance: 2000 Support: 1910)

The index closed lower for last week with the 65 day MA preventing the index from moving further upward. Looks like we have to redraw the symmetrical triangle that was seen previously with new support and resistance lines. At this point it is possible that the symmetrical triangle we’ve redrawn may turn into an ascending triangle, either way, both can have a possible target of 2400. The volume (not considering the dates where there were unusually high volume) currently diminishing, coupled with the formation of higher lows, suggests that supply is dwindling and that buyers are willing to buy at a higher price. I am hoping that this action be sustained for the coming weeks to pave the way for a breakout.

For the coming week, there may still be futher selling as suggested by the stochastics. There is still no clear reversal sign.


MWC (Chart: Daily Resistance: 12.25 Support: 10.00/8.00)

Looks like a breakdown of the symmetrical triangle for MWC with very large volume. This is one stock to avoid for now. Downward target price is at 8.00. At this point, the stock is currently oversold, expect a pull back to re-test the support-turned-resistance at 12.25 for the coming week.

WEB (Chart: Daily Resistance: 0.031/0.035/0.037 Support: 0.030)

WEB brokeout of a possible small ascending triangle with large volume and a lengthy white candle. Target price is at 0.038. There are a couple of hindrance to the target price, first is the 65 day MA at 0.031, then the 130 day MA at 0.035 and lastly the 260 day MA at 0.037. Price at current (0.031) is a very ideal price to get in the stock. Cutloss when it dips back to 0.030.