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.