StockWatch (June 28 – July 2): PSE, NRCP

PSEi (Chart: Daily Resistance: 3367 Support: 3244)

The index once again went head on with the standing resistance line from June 2008. Unfortunately, the bears are still standing their ground and have again succeeded to prevent the index from moving beyond the resistance line.

The last trading day saw the creation of a white candle that gave a respite from the week long bearish sentiment. For the coming week, if a white candle is also formed with large value turn over for the index, then probably we may see a sideways movement of the index. Otherwise, if the follow through is not realized by the first trading day this week, we may see the index move lower towards the support at 3244 which is the 65 day MA.

NRCP (Chart: Daily Resistance: 1.98 Support: 1.79/1.67)

NRCP went beyond the target price of 1.75 and reached a high of 1.98. For the coming week expect the stock to drop further. Observe the 38.2% Fibonacci retracement as this might provide support to the stock for another upward movement. RSI is very much overbought, expect a possible short bounce when RSI reaches 50 to 60 level.

StockWatch (June 21-25, 2010): PSEi, AJO

PSEi (Chart: Daily Resistance: 3362/3376 Support: 3224)

The index gapped up on the second day of trading. However, there was no follow through on the succeeding days.

For the coming week, again observe the movement towards the long standing resistance from June 2008 near 3362/3376. It is possible that once the index reaches that level it would once again move downwards.

AJO Weekly Chart

AJO (Chart: Daily Resistance: 0.045 Support: 0.034)

AJO brokeout from a downward channel with a target price of around 0.041. The current price is already near the target, but based from the weekly chart, there may be some future for this stock. The weekly volume was relatively large, giving credence to the recent upward movements. In addition the RSI still has room to move upward.

Looking at the larger picture, the recent upward movement may be the second leg of a possible double bottom formation with the first leg formed around Dec of 2008. The neck line of the double bottom is at 0.0725, so from the currently price level, there is still a long way for the stock to go.

StockWatch (June 15-18, 2010): PSEi, PNB, NRCP

PSEi (Chart: Daily Resistance: 3372 Support: 3211)

The index moved lower for this week with a big gap down on the first trading day of the week. It seems that bulls are unable to propel the index beyond the previous high. On the last trading day for the week we see the index trying to move higher, but the bears are still fighting and we are left again with a stalemate position with the opening value near the closing value, but with a bias for the bears as the closing value is lower.

For the coming week, expect the index to move sideways and probably would recover by the end of the week. Still observe the resistance line from June 2008 and support at the 65 day MA level (3211).

PNB (Chart: Daily Resistance: 30.50 Support: 28.50)

PNB is exhibiting a symmetrical triangle formation. The stock is near the apex, so we might be seeing either an upward or downward breakout for this stock. Upward target price is 40 while downward target price is below 20. Watch out for a possible breakout or break down of the formation.

NRCP (Chart: Daily Resistance: 1.72 Support: 1.54)

NRCP brokeout of a symmetrical triangle with an upward target price of 1.75. Target price is already near so expect resistance on the 1.75 level. This stock however, has the potential of moving further up as the MACD is widely opening upward and above the centerline.

StockWatch (June 7-11, 2010): PSEi, MER, DGTL

PSEi (Chart : Daily Resistance: 3367 Support: 3195/3106)

The index had a good run up last week. However, there is still the resistance from June 2008 which is affecting the upward movement of the index. As of current, there is a battle between bulls and bears, as the trading last Friday ended with a stalemate. But based on the RSI and the Stochastics, there is a higher possibility that the bears will win in the coming week, so it is best to lighten your load.

MER (Chart: Daily Resistance: 197 Support: 160)

MER has exhibited large volume lately, with the last trading day plotting the highest volume since December last year. Looking at the chart, there is a horizontal channel which is acting as a resistance lately. For the next week, expect the stock to move lower as the RSI is now overbought.

DGTL (Chart: Daily Resistance: 1.65 Support: 1.46)

DGTL broke out of a sideways channel with a gap. Target price is near 1.65.
Be cautious of buying at this point as target price is near and there is a higher possibility of the stock to move lower towards the end of this week as the RSI is very much overbought.