StockWatch (May 18-22, 2009): PSEi, DMC

PSEI (Chart: Daily Resistance: 2350/2400 Support: 2256/2060)

The index moved sideways for a moment last week, but ended still strong by Friday, having successfully moved farther from the 260 day MA (green line).

There are two upcoming resistance at 2350 (orange horizontal line), which is the gap from Oct 2008 and 2400 which a point in the line connecting the peaks of May and Aug 2008.

There may still be some small upward movements next week, but trade cautiously. RSI is still very much overbought and a correction is due any time. Probably it would be best to sell a portion for the mean time to lock-in some of the profits.



DMC (Chart: Daily Resistance: 7.30 Support: 5.1)

DMC had a break out with volume from a rounding bottom pattern. Volume on breakout was large. Modest target price is at 8.5 . Upcoming resistance at 7.30 which is a previous high. If you buy at the current level of 6.9, cutloss is at around 6.5.