StockWatch (Dec 01-04, 2009): PSEi, MEG

PSEi (Chart: Daily Resistance: 3067 Support: 2974)

The index seem to have formed a rising wedge that broke down last Friday. If this is indeed a valid formation, we can expect the index to move lower next week. The breakdown is peculiar such that the breakdown formation last Friday was a white candle. This seems to be a mixed signal that I am having, since white candles are bullish, but the breakdown is definitely bearish, so I’d rather observe the coming trading days for confirmation (i.e. if it moves lower by Monday). Also observe the RSI as it moves towards the 50 level. Since March the RSI hasn’t fallen far below the 50 level, it has always managed to pull back up above 50. That RSI level may once again provide support for the index, so do observe it as it may signal a good time to buy for range trading.

On a general note, I’d recommend to lessen your position in the market because the market seems to be having a hard time moving futher upward since Aug and a large correction may happen anytime soon. So its good to limit trading to quick range trades and avoid going long for the mean time.


MEG (Chart: Daily Resistance: 1.48 Support: 1.24)

MEG seems to have broken down from a head and shoulder formation. Downward target price is around 1.10. MACD is now below the centerline and in bullish territory. Don’t be fooled by the long white candle that was created last Thursday. It was just a return move towards the breakdown price of 1.44. There was no folllow through last Friday, as it did not move higher with larger volume. The white candle last Thursday was more of bounce from the oversold RSI level of 30. For the coming week, the stock may move sideways to downward. Any chance of upward movement would be a good time to divest yourself of the stock.

StockWatch (Nov 23-27, 2009): PSEi

PSEi( Chart: Daily Resistance: 3083 Support: 3000/2970)

The index plunged further on the first trading day for last week, but it was able to recoup its losses by Wed and Thurs. The index is unable to move further beyond the previous high which suggests weakness in the index. Also looking at the RSI, there is a bearish divergence formed, with the index moving higher but the RSI is having a lower peak, so expect the index to move down to sideways again for this week. It is possible that the index may be ranging between 3083 and 2970. If support at 2970 holds, then this would probably be an opportunity to range trade some stocks.

StockWatch (Nov 16-20, 2009): PSEi, BDO

PSEi (Chart: Daily Resistance: 3070 Support: 2970)

The index brokeout from the monthlong sideways movement and it is accompanied by relatively larger value turnover. As of current, the index is overbought according to the RSI and the market reacted accordingly to this last Friday where a selldown happened. For the coming week expect the downward to sideways movement to continue. Watchout for support at 2970, that would probably be a good time to buy if support holds at that level.


BDO Weekly Chart

BDO (Chart : Daily Resistance: 39 Support: 36.50)

BDO seems to have broken out of a big ascending triangle formed from July 2009. The breakout created gap up with a large volume. The weekly chart also confirms the breakout. Target price is at 43. Currently there seems to be a resistance at 39.50 which is a previous gap from Sep 2008. This might be affected by possible sideways to downward movement of the market, so do watch out if support at 36.50 holds.

StockWatch (Nov 9-13, 2009): PSEi, BPC, FGEN

PSEi (Chart: Daily Resistance: 2970/3000 Support: 2905/2850)

The index is still on a sideways movement for the past two weeks and the break of the 3000 that I was expecting did not happen. As of current the index is moving within a small range of 2905 and 2970. The MACD seems to suggest an impending crossover from the signal line and this we’d have to wait and see if it will bring more buying in the market to nudge the index from always moving sideways.


BPC (Chart: Daily Resistance: 4.20/ 4.90 Support: 3.70)

BPC had a breakout from a symmetrical triangle. Target price for this stock is around 4.90/5.00. There was large volume on the breakout, but it was followed by a sell down the following day also with significant volume. There was a lack of follow through buying which is quite bothering. MACD is bullishly opening upwards, but the RSI suggests overbought condition. It is possible that this stock may move down to sideways next week. As long as the stock does not go below support at 3.70, this stock is still good to play.

FGEN (Chart :Daily Resistance: 19 Support: 16.75)

FGEN also brokeout from a symmetrical triangle with a very large volume. Target price for the stock is around 23. Watchout for upcoming resistance at 19.00 which is a previous high.