StockWatch (Aug 23-27, 2010): PSEi, MEG

PSEi (Chart: Daily Resistance: 3597 Support: 3438)

The index had a remarkable rally last week with large value turnover. It did not only bounce from support, but was also able to create a new high. RSI is again on the overbought level, so for the coming week, expect a possible downward movement by the middle of the week.


MEG- Monthly

MEG (Chart: Daily Resistance: 2.28 Support: 1.76)

MEG broke out of a very big cup and handle formation. Target price is near 3.0. The breakout volume on the daily chart is not that convincing because it did not surpass previous week’s large volume. However, looking at the monthly chart, the breakout is a little more convincing as the breakout volume was larger than the previous months. This somehow indicates that the target price might not be achieved in a couple of week’s time, but rather probably more than 4 months before target is reached

StockWatch (Aug 16-20, 2010): PSEi, GLO

PSEi (Chart: Daily Resistance: 3536 Support: 3431)

The index moved sideways for a moment and then moved downwards for the rest of the week last week as a reaction to the overbought condition. For the coming week, observe if the support line at 3431 will hold. Also do observe the RSI as it is approaching near the level of 50, this sometimes acts as a support level when coming from a high of RSI 70. Expect the index to move further downward next week and probably move sideways when it reaches the support line at 3431.

GLO Weekly Chart

GLO (Chart: Daily Resistance: 820 Support: 750/700)

GLO is not in a very good position currently as the stock just broke down from a channel with a downward target price of about 750. To add to the negative events, the break down also formed a gap downward. The RSI of the stock on the other hand tells of an oversold stock and a possible bounce may happen anytime next week.

A thing to observe is if the stock would be able to go lower than 700. The 700 level is a support line or neck line of a possible large head and shoulder formation (See weekly chart). If this stock breaks down from the support, then this definitely would be a very long downward movement (however, I think this is highly unlikely, because the downward target price would bring the stock to a negative value)

StockWatch (Aug 9-13, 2010): PSEi, MEG

PSEi (Chart: Daily Resistance: 3533 Support: 3424)

The index had a short rally last week, breaking a 2 week sideways movement. This is a positive action for the index as it showed strength and was able to move further away from the support line. The only problem is that with the recent rally, the index has reached overbought level. So for the coming week, exercise caution as selling action might take center stage.


MEG-Weekly

MEG (Chart :Daily Resistance: 1.77 Support: 1.50)

MEG had a rally breaking just above the resistance line of 1.74. This is short of a breakout from a cup and handle formation (see weekly chart) or an ascending triangle with a target price of 3.00. The only problem however is that the recent rally has created 2 gaps and the stock has reached overbought level. Another gap formed for this week might not be sustained and a return move towards the support may happen. Watch out for the resistance at 1.77 if this is breached with large volume, then the stock would be heading towards its target at 3.00

StockWatch (Aug 2-6, 2010): PSEi

PSEi (Chart: Daily Resistance: 3485 Support: 3417)

The index moved sideways last week. There is not much action happening with the index and this may continue to move sideways next week. One good thing about this is that even if it is moving sideways, the index is not going below the support line. If this is further supported on the coming weeks, this would be a good sign of possible further upward movement.