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.