StockWatch (Dec 13-17, 2010): PSEi

PSEi (Chart: Daily Resistance: 4235 Support: 4049/3953)

The index encountered resistance upon reaching the previous high of 4221 and have started to move south again. As of current, the 65 day MA is supporting the index, but if this does not hold, the next support would be at 4049, then at 3953 which is the previous low. One thing to observe for the coming week is the possibility of an inverted head-and-shoulder formation if the support at 4049 holds and the index started moving north again. The neck line of the formation is at 4235, a break above that with large value turnover may propel the index to new high at 4500.

StockWatch (Dec 06-10, 2010): PSEi

PSEi (Chart: Daily Resistance: 4194/4221 Support: 3953)

The index has bounced from the lows of the RSI 30. Trading last Thursday created a white candle that broke both the immediate resistance line and the resistance line from the start of the downward movement. It also broke through the 65 day MA as well. This is a positive thing for the index as it was able to break through 3 resistance levels. However, there was no follow through with the trading action last Friday. It would have been great if the trading last Friday was again a white candle with considerable spread, but instead the index opened and closed on almost the same level. This indicates a deadlock between bullish and bearish traders. So for next week it is still a wait-and-see who would win and break the impasse.

Considering the Elliott wave counting, I am hoping that this recent break of the 3 resistance levels would be the end of the C wave. But I am also not sure whether the C wave was completed in the first place, because text book length of C wave is at least the same size as wave A, so I was expecting the C wave to go further down toward 3850 level, which did not happen

StockWatch (Nov 29 – Dec 03, 2010): PSEi, LR, GLO

PSEi (Chart: Daily Resistance: 4220 Support: 3800)

The corrective C wave happened earlier than what I expected, starting the trading last week with a downward movement which continued for the whole week. The downward movement stopped just on top of the 65 day MA, so it’s a wait-and-see if the 65 day MA would provide support for the index. If the index continues its downward movement going further below the 65 day MA, next support is the 130 day MA at 3800. If the index does continue to move further downward, I believe that it won’t be that long before the index bounces from the lows as the RSI is near oversold level. Look out for signs of reversal, especially the breaking of the downward trend line formed by connecting the peaks of the corrective C wave.

LR Weekly Chart

LR (Chart: Daily Resistance: 2.7 Support: 2.5 )

Looking from the daily chart LR has broken out with large volume from a symmetrical triangle. Its possible target price is at 3.0. The only problem with LR is that every time a break out happens, it immediately collapses and follows the support line. This is also evident on weekly chart, when each breakout happens, it usually is near resistance line and does not move further above that, so next week is a wait-and-see if the recent breakout will push through this time and not collapse. Observe if the volume on succeeding trading days forms a white candle with a relatively large volume (greater than 3M). If the breakout does push through, we may see the stock aiming for the previous high near 4.25.

GLO (Chart: Daily Resistance: 900 Support: 762)

GLO has been bearish all year round, but looking at this daily chart, this stock may now be on its way out of its bearish situation with a possible double bottom. Previous low is near 762. RSI is now very much oversold so watch out for a possible bounce. The neck line for the double bottom is at 905, a break above that with large volume confirms the double bottom formation. The breaking of the neck line is still way too far, but one can make profits by trading the range from the current level to the neck line.

StockWatch (Nov 22-26, 2010): PSEi, ORE, ANI, ACR

PSEi (Chart: Daily Resistance: 4250/4300 Support: 4050)

Looks like the 65 day MA acted as support for the index, as it was able to bounce from the downward movement.

Trading last Friday created a white candle accompanied with large value turnover. We may be seeing an A-B-C corrective Elliott Wave in the making and as of current we may be in the start of the B wave. The B wave may reach up to 4250-4300 before continuing with the corrective C wave downward.

For next week, the upward movement may continue, but exercise caution as the downward corrective C wave may happen towards the end of next week.

ORE Chart: Weekly

ORE (Chart: Daily Resistance: 5.0 Support: 3.60)

ORE brokeout from the upward channel with a target price of 5.0, but aside from that breakout, there is also another breakout visible only from the weekly chart, which is a rounding bottom breakout with a target price of probably near 7.0

ANI (Chart: Daily Resistance: 15/18 Support: 12.70)

The bounce that I was expecting did not happen for this week. However, based on the trading last Friday, a white candle was formed with a very large volume, so this maybe the start of the bounce that I was expecting as the RSI has long been on the oversold level.

ANI has a possible double bottom formation, so be on the watch for a breakout near the resistance of 18.00

ACR (Chart: Daily Resistance: 1.62 Support: 1.50)

ACR brokeout from a rounding bottom last Thursday. The target price for the breakout is near 2.40

StockWatch (Nov 15-19, 2010): PSEi, SMB, ANI, NRCP

PSEi Weekly Chart

PSEi (Chart: Daily Resistance: 4413 Support: 3980)

The index had no respite from the successive sell down that happened the whole week last week. RSI even went below 50 which usually acts as support when RSI comes from the beyond the RSI high of 70. There is still no good indicator of a possible reversal, but based only from the RSI, which is now near RSI low of 30, there is a good possibility that either a short bounce or sideways movement may happen anytime within the week. Upcoming 65 day MA at 3980 might act as support, so watchout for any reversal indicators.

Looking at the weekly chart, the sell down that happened had large spread with considerable value turn over, so I don’t expect the index to continue its upward movement immediately. Sideways to downward movement may happen for the next 2-3 weeks before the index tries to continue its upward movement. But even with these, do watchout for possible bounce that may happen for the stocks nearing RSI of 30 and as much as possible, hold them only for the short term.

SMB (Chart: Daily Resistance: 11.50/12.00 Support: 10)

Amidst the sell down that was happening in the market, SMB was going the other way around defying general market sentiment. SMB brokeout from a symmetrical triangle with a possible target price of 12.00. As of last price, the target price is already near. Expect that this stock may still pack some punches to push through with reaching target price of 12.00, but after that, expect the stock to move downwards for the mean time

ANI (Chart: Daily Resistance: 15 Support: 12.50)

ANI may be one of those stocks that may bounce from lows. The stock is now near previous low of 12.50 and at the same time the RSI is way below the low of RSI 30. Because of these 2 coinciding instances, there is a higher possibility for the stock to bounce from support. Upcoming resistance is at 15, where both the 65 and 130 day MA are both located.

NRCP (Chart: Daily Resistance: 2.04 Support: 1.88)

NRCP brokedown from its upward trend and at the same time the 65 day MA, both of which are bearish signs for the stock. However, for the coming week, there may be a short bounce that would happen for this stock as the RSI is way below the low of 30 and at the same time, the stock is near an upcoming support at 1.88 which is the 130 day MA. There is not much profit for this stock at the current level, but if you are able to get hold of this stock at 1.88, this might give you a quick bang for the short term, but definitely this is not a stock to hold for the long term as the uptrend has already been broken.

StockWatch (Nov 08-12, 2010): PSEi, LCB

PSEi (Chart: Daily Resistance: 4413 Support: 4347/4273)

The index amazingly had another short bullish run, something which I did not expect at all to occur. The first trading day was good as we saw a white candle with value turnover that is relatively larger than the other white candles. However, the last trading day I believe is a bad sign, as an engulfing pattern was created. The black candle formed is longer than the previous candle and it just wiped out gains from the previous trading days. Not only that, large value turnover is also evident on the last trading day. For next week, expect the index to move downwards.


LCB (Chart: Daily Resistance: 0.50 Support: 0.36)

Support at 0.36 for LCB did hold last week, with the stock bouncing from the lows. There is probably a renewed interest for this stock as the last trading day had a relatively large volume compared to the past 2 weeks. Observe if by Monday, the volume still increases, if it does, then we probably have a breakout of a downward channel with a target price of 0.5.

StockWatch (Nov 1-5, 2010): PSEi, LCB, CPM

PSEi (Chart: Daily Resistance: 4299 Support: 4250)

The index moved downward to sideways last week. The MACD is still bearish and RSI is still overbought, there is still no good indication in the chart so expect further downward to sideways movement for the index next week

LCB (Chart: Daily Resistance: 0.42 /0.75 Support: 0.36)

LC B is about to reach a support level at 0.36, the upper level of the gap up that happened last September and at the same time the 65 day MA level. The index has been moving downwards since Sep and it is now near oversold level. A bounce will definitely happen for this stock, so be on the look out for reversal formations.

CPM (Chart: Daily Resistance: 2.55 Support: 2.06)

CPM is very much oversold with the RSI reaching below 30. This stock is definitely queued for a bounce from the low. As of current, there is a hammer formation last Oct 28 and trading last Oct 29 saw a black candle that is higher than that of the previous day. Come Monday if the stock opens higher, this is the confirmation of the reversal and a time to buy for the short term hold. Watchout for upcoming resistance at 2.52 which is the 65 day MA

StockWatch (Oct 25-29, 2010): PSEi, APO, SLI, MER

PSEi-Weekly Chart

PSEi (Chart: Daily Resistance: 4330/4350 Support: 4161)

Last week the index moved lower, but was able to recoup losses on the last 2 days of trading and was even able to break above the sideways movement (line A-B) for the past 3 weeks. The breakout that happened last Friday on the sideways channel gives a possibility of the index moving higher towards 4350. The question though is whether there will be enough momentum to propel the index beyond successive resistance areas. One of the upcoming resistances is at 4330, if this proves to be a strong resistance the index might move in a ranging movement within a slightly upward leaning channel (line C-D).

Looking at the weekly chart, though the bearish confirmation for the hanging man candle stick formation did not appear, there is another hanging man that formed for last week so it’s a wait and see what will happen for the coming week whether the index would still move upward or whether another hanging man would appear. But as long as the hanging man formation appears, this means caution in trading.

APO (Chart: Daily Resistance: 2.45 Support: 2.15)

APO has broken above the upward channel with very large volume. The only problem is that the target price at 2.45 is already near the closing price last Friday. Also the stock is very much overbought, so a correction will happen anytime soon. It would be best to wait for the stock to correct first before buying. Buy near the support at 2.15

SLI (Chart: Daily Resistance: 2.35/2.50 Support: 2.00)

SLI’s unusually large volume last Friday caught my attention. Even if there is no formation broken, the large volume I believe is enough for the stock to move higher. This stock is good for a short term hold up to the previous high of 2.50. Things may start to move the other direction once it gets near the RSI of 70. Look out for a possible head and shoulder formation if the stock moves downward when it reaches near 2.35.

MER (Chart: Daily Resistance: 236 Support: 206)

MER had 2 long white candles formed Thurs and Fri last week. Volume is relatively larger than the volume during the downward movement so this is a candidate for buying. Observe the volume as the stock moves higher, if the volume is increasing together with the price this means momentum is intact, but if the volume is diminishing as the stock moves higher, upcoming resistance at 236 might prove a strong resistance.

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StockWacth (Oct 18-22, 2010): PSEi

PSEi – Weekly

PSEi (Chart: Daily Resistance: 4246 Support: 4146)

The index is now showing further signs of bearishness. Looking at the weekly chart, we are now seeing a hang-man candlestick formation which is a bearish indication. A hangman formation usually needs a confirmation on the next trading day/week, that if the open and close is lower than the hangman formation’s values, it would be a confirmation of a bearish event. However, even if we do not wait for that confirmation, it is very much evident in the chart that we are now in a bearish state with the MACD in the daily chart already lower than the MACD signal line. RSI also shows a negative divergence. So for next week, it would be best to sell for now and just recoup your positions later.

StockWatch (Oct 11-15, 2010): PSEi, GMA7, APC

PSEi – Weekly chart

PSEi (Chart: Daily Resistance: 4350 Support: 4222)

The index has been continuously moving upward with intermittent short downward movement. It looks as if this kind of action in the market may continue for 2weeks to another month before a major correction happens. The daily chart is showing negative divergence between the RSI and the index which could signal an upcoming downward movement. Looking at the weekly chart, the RSI shows an overbought level that supports the possibility of an upcoming correction. For the coming week, you could either stop accumulating for the mean time or start disposing a portion of your portfolio and buy back after the upcoming correction.

Note: A lot of stocks have reached or about to reach their previous high which means strong resistance is being encountered or will be encountered thus a possibility of sideways to downward movement.

GMA7 (Chart: Daily Resistance: 8.80 Support: 7.25)

GMA7 had a breakout from a downward channel with trading last Friday creating a gap and a tall white candle accompanied with large volume. It looks like this upward movement is a bounce from support near RSI of 50 coming from the RSI high. The MACD is also looking good with a possibility of a cross above the signal line. The only problem with this stock is that resistance is near at 8.80 (previous high).

APC (Chart: Daily Resistance: 0.95 /1.28 Support: 0.84)

APC also had a breakout from a sideways channel accompanied with a large volume and a gap. Target price is near 0.95. The MACD is also about to cross above the signal line, so there may be more to this stock beyond the target price.

StockWatch (Sep 27 – Oct 1, 2010): PSEi, LCB

PSEi (Chart :Daily Resistance: 4125 Support: 4023/3900)

The index has continued to move sideways last week. We might be seeing the index move in between 3900 to 4125 before it once again move upward. Expect the sideways to downward action until probably when the RSI reaches near 50 to 60 level. For those going for long term, this is an opportunity to buy the dips, while for those whose objective is short term, this would be a time to lighten your load and take advantage of a possible ranging action by the index.

LCB (Chart :Daily Resistance: 0.75 Support: 0.6 /0.43)

LC and LCB are stocks to avoid for next week. It is very evident on the chart that the recent run up would be short lived as an almost equal amount of volume is seen on the downward action last Friday. For those holding this stock, it would be best to sell while the price is still high.

StockWatch (Sep 20-24, 2010): PSEi

PSEi (Chart: Daily Resistance: 4021 Support: 3955/3900)

The index moved sideways for last week instead of moving downwards to the previous resistance turned support at 3900. Again RSI is still very much overbought, expect the index to move sideways to downwards next week. Immediate support is at 3955 which is the trend line for the past 3 weeks, next support is at 3900, which is the previous high. The sideways to downward movement might continue until the RSI bounces from the 50 RSI. In either way you see it, next week would be a chance to lighten your load and buy near support levels or a chance to add more to your positions, both cases would be a good strategy as the Moving Averages are in the right order and it looks though that the lines are starting to open wide, especially the 65 day MA.

StockWatch (Sep 13 – 17, 2010); PSEi

PSEi (Chart: Daily Resistance: 3902 Support: 3435)

The index is very much on the doorstep of the previous high of 3900. Next week would be a deciding factor if the index would be able to break away from the previous high of 3900. I believe that we would be seeing lots of selling action next week as the RSI is way too overbought. If the index starts to move downward next week, watch out for support when the RSI gets near the 50 to 60 level. Even if the index would not be able to move beyond the resistance line, just the 2 week rally accompanied with a large value turnover somehow gives some form of assurance that breaking of previous high is not far away.

Also, I noticed one very promising thing when I looked at the index’s quarterly chart. If my Elliot Wave count is correct, we might now be in the 3rd wave. Usually the 3rd wave is the longest wave and just looking at how long was wave 1, it just leads me to speculate that wave 3 might be atleast twice that of wave 1. This is definitely a trader’s heaven and a time to go long.

StockWatch (Sep 6-10, 2010): PSEi, BPI

PSEi (Chart: Daily Resistance: 3739/3900 Support: 3566/3451)

The index had a good rally last week, with a gap forming on the third day of trading. The gap was accompanied with large value turn over, so this gives credibility to the rally and gap.

Something to watchout is the upcoming 3900 level, which was the previous high of 2007 that started the bearish sentiment from 2007 to 2008. This is undoubtedly a major resistance to watch out.

Also, the index is once again in the overbought level, watchout for the RSI whether it would be able to supersede its previous high. If not, this may be exhibiting a bearish divergence where the index was able to move higher, while the RSI wasn't able to do the same.


BPI (Chart: Daily Resistance: 54 Support: 48)

The long awaited breakout happened for BPI last week. One could say it’s a breakout from a complex inverse head and shoulder formation or a rounding bottom either way both formations point to 65 as the target price. However, expect a downward movement next week for the short term as the RSI is very much overbought.

StockWatch (Aug 23-27, 2010): PSEi, MEG

PSEi (Chart: Daily Resistance: 3597 Support: 3438)

The index had a remarkable rally last week with large value turnover. It did not only bounce from support, but was also able to create a new high. RSI is again on the overbought level, so for the coming week, expect a possible downward movement by the middle of the week.


MEG- Monthly

MEG (Chart: Daily Resistance: 2.28 Support: 1.76)

MEG broke out of a very big cup and handle formation. Target price is near 3.0. The breakout volume on the daily chart is not that convincing because it did not surpass previous week’s large volume. However, looking at the monthly chart, the breakout is a little more convincing as the breakout volume was larger than the previous months. This somehow indicates that the target price might not be achieved in a couple of week’s time, but rather probably more than 4 months before target is reached

StockWatch (Aug 16-20, 2010): PSEi, GLO

PSEi (Chart: Daily Resistance: 3536 Support: 3431)

The index moved sideways for a moment and then moved downwards for the rest of the week last week as a reaction to the overbought condition. For the coming week, observe if the support line at 3431 will hold. Also do observe the RSI as it is approaching near the level of 50, this sometimes acts as a support level when coming from a high of RSI 70. Expect the index to move further downward next week and probably move sideways when it reaches the support line at 3431.

GLO Weekly Chart

GLO (Chart: Daily Resistance: 820 Support: 750/700)

GLO is not in a very good position currently as the stock just broke down from a channel with a downward target price of about 750. To add to the negative events, the break down also formed a gap downward. The RSI of the stock on the other hand tells of an oversold stock and a possible bounce may happen anytime next week.

A thing to observe is if the stock would be able to go lower than 700. The 700 level is a support line or neck line of a possible large head and shoulder formation (See weekly chart). If this stock breaks down from the support, then this definitely would be a very long downward movement (however, I think this is highly unlikely, because the downward target price would bring the stock to a negative value)

StockWatch (Aug 9-13, 2010): PSEi, MEG

PSEi (Chart: Daily Resistance: 3533 Support: 3424)

The index had a short rally last week, breaking a 2 week sideways movement. This is a positive action for the index as it showed strength and was able to move further away from the support line. The only problem is that with the recent rally, the index has reached overbought level. So for the coming week, exercise caution as selling action might take center stage.


MEG-Weekly

MEG (Chart :Daily Resistance: 1.77 Support: 1.50)

MEG had a rally breaking just above the resistance line of 1.74. This is short of a breakout from a cup and handle formation (see weekly chart) or an ascending triangle with a target price of 3.00. The only problem however is that the recent rally has created 2 gaps and the stock has reached overbought level. Another gap formed for this week might not be sustained and a return move towards the support may happen. Watch out for the resistance at 1.77 if this is breached with large volume, then the stock would be heading towards its target at 3.00

StockWatch (Aug 2-6, 2010): PSEi

PSEi (Chart: Daily Resistance: 3485 Support: 3417)

The index moved sideways last week. There is not much action happening with the index and this may continue to move sideways next week. One good thing about this is that even if it is moving sideways, the index is not going below the support line. If this is further supported on the coming weeks, this would be a good sign of possible further upward movement.

StockWatch (Jul 26-30, 2010): PSEi, JGS, PNB, RCB

PSEi (Chart :Daily Resistance: 3485 Support: 3402)

The resistance line that was broken last week provided support for the index and enabled it to move sideways. For the coming week, I am more inclined to say that the index might not be able to move upward for the mean time as trading last Friday moved the index higher but closed lower and formed a black candle accompanied by high value turnover. Expect further sideways movement for this coming week. The resistance line turned support is something to observe for the coming week. If it is able to provide support for the index, this might be a sign that the index will move higher and it is just consolidating above the support line.



JGS (Chart: Daily Resistance: 17.50 Support: 16.25)

JGS is still a viable option to rake in some money. JGS made a return move towards support at 16.25 and never went below the support line. While on the return move to support, the volume was not large enough to cause problems, instead it just gave opportunity to accumulate more JGS at a lower price. Trading last Friday created a white candle accompanied by large volume and is definitely a very visible sign that the index is now on its way up towards the target price of 19.


RCB (Chart: Daily Resistance: 25 Support: 21)

The stock brokeout from an ascending triangle with large volume. Target price is at 25, but the recent breakout diminished the returns. Watch out for a return move towards support, if this happens and support holds, then this is an opportunity to buy more of the stock

PNB (Chart: Daily Resistance: 44.50 Support: 30.50)

The stock broke-out from a symmetrical triangle last July 13, but the target price of 40 has been reached. Trading last Friday still propelled the stock further above the target price accompanied with large volume. The volume that accompanied that upward movement last Friday tempts one to buy more, however, looking at the RSI, the stock is very much over bought. Anytime soon, the stock will start to move lower, so exercise caution if you plan to buy this stock.