PSEi (Chart: Daily Resistance: 2560 – 2626 Support: 2500)
Looks like this is it, the long awaited break of the resistance line formed from Oct 2007 is just one step away and based on the large value turn over and the gap that formed last week, there is a higher chance that this time, the break above the resistance line will push through.
However, the market is near overbought level again, and the most likely scenario that I could see is that the index would break the resistance and do a return move to 2560 to test the resistance-turned-support level. Also up ahead is another resistance at 2626 which is the previous high. If the market also breaks above the previous high, this definitely means were back on the upward trend for the market.
LCB (Chart: Daily Resistance: 0.29/0.34 Support: 0.225/0.155)
LC and LCB seems to have broken from a sideways channel. One could also say that it has broken from a symmetrical triangle. But any which way you look at it, target price is both at around 0.32.
This stock had a shaky run with the stock being sold down on Wed last week with large volume, possibly by those who were observing the resistance at 0.235. But this was bought back up beyond the resistance, to the high of 0.25 and closing at 0.245 with ¾ of the volume during the sell down. I believe that the large volume on the following day after the sell down, neutralizes the effect of the sell down, which means a lot are still confident with this stock.
This stock is definitely a buy, but do watch out for the upcoming resistance at 0.29 and 0.34 which are previous highs. Also the stock is near overbought so do watch out for a return move towards the support line of 0.235
PX (Chart: Daily Resistance: 7.90 Support: 6)PX is exhibiting 2 formations, cup and handle formation and also a possible double top formation.
The bullish side of the formation, the cup and handle, has a breakout price at 8.00 with a possible target price of 11.50. A good volume on breakout is around 20M shares traded.
The bearish side, the double top, is still too early to confirm, but if the resistance at 7.90 holds, then do watch out if the stock would break the neckline of the double top at 6.00.
For this stock, it would be best to buy only on break of resistance at 7.90 and watch for the volume, there has to be large volume on breakout preferrably around 20M shares traded
2 comments:
On LC/B, you can see a large cup and handle breakout especially if you view it on a weekly timeframe. :)
Yup, I agree on the cup and handle, however, I'm not sure if the volume validates the cup and handle formation since there was not much volume on the left side of the cup. But then again, I may be wrong :)
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