PSEi (Chart: Daily Resistance: 3338 Support: 3158)We may be seeing a possible power struggle between the bulls and the bears in action with the index. Currently the resistance line from June 2008 still hasn’t been broken but at the same time, for each instance that the resistance line stopped the advance of index, the 65 day MA has provided support.
The downward movement of the index might be coming to an end by next week as we see 2 gaps formed on the way down, an indication of a possible exhaustion. Also considering the last trading day of the index last week, we see a hammer candle stick formation, which is a bullish indicator if seen during the downward movement. So by next we may be seeing another bounce from the support of the 65 day MA. But it is still a wait and see if the index is able to move beyond the standing resistance line.
OM - Weekly Chart
OM (Chart: Daily Resistance: 0.013 Support: 0.010)OM seems to be on the move to break a previous high of 0.13. Trading last Friday saw this stock with a large spread accompanied by large volume as well.
Zooming out of the picture, we can see that this stock maybe forming a rounding bottom with resistance at 0.013. If a breakout happens, expect a target price of near 0.020. Also looking at the weekly chart, we can see that the MACD has crossed above the center line and is opening wide upwards. This is a possible indication of the start of good things to come from this stock. But looking at the daily and weekly RSI, this stock is overbought already, so expect a possible downward movement anytime soon. As long as the MACD stays on above the centerline, this stock is good for going long.
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