StockWatch (Jul 12-16, 2010): PSEi, DGTL

PSEi (Chart: Daily Resistance:3412 Support: 3272)

The index made a good short run up, but was stopped by the resistance near the June 2008 resistance line. There was good increase in value turn over for the index on the run up, but the last trading day had a black candle with an even larger value turn over.

For next week, expect the index to move downwards. Watch out for a possible gap down as the index has always gapped down every time it reaches the resistance level. Observe the 65 day MA for support as well. It seems that the ranging action seems to be getting tighter and probably sooner or later we’ll see the result, whether the index would move further up or down.


DGTL (Chart: Daily Resistance: 1.62/1.78 Support: 1.46)

DGTL seems to be on its way to recovery from the recent drop. Trading last week on Thursday and Friday was accompanied with a very large volume and maybe an indication of a recovery. There is no formation that can be seen except for a possible V formation and if this successfully forms a V pattern and breaks the neckline at 1.78, expect a target price of 2.10. This is still too early to realise, but at the very least, the stock may try to re-test previous high and at the current level, it is still a long way to go which means more opportunity for earning.