StockWatch (Nov 29 – Dec 03, 2010): PSEi, LR, GLO

PSEi (Chart: Daily Resistance: 4220 Support: 3800)

The corrective C wave happened earlier than what I expected, starting the trading last week with a downward movement which continued for the whole week. The downward movement stopped just on top of the 65 day MA, so it’s a wait-and-see if the 65 day MA would provide support for the index. If the index continues its downward movement going further below the 65 day MA, next support is the 130 day MA at 3800. If the index does continue to move further downward, I believe that it won’t be that long before the index bounces from the lows as the RSI is near oversold level. Look out for signs of reversal, especially the breaking of the downward trend line formed by connecting the peaks of the corrective C wave.

LR Weekly Chart

LR (Chart: Daily Resistance: 2.7 Support: 2.5 )

Looking from the daily chart LR has broken out with large volume from a symmetrical triangle. Its possible target price is at 3.0. The only problem with LR is that every time a break out happens, it immediately collapses and follows the support line. This is also evident on weekly chart, when each breakout happens, it usually is near resistance line and does not move further above that, so next week is a wait-and-see if the recent breakout will push through this time and not collapse. Observe if the volume on succeeding trading days forms a white candle with a relatively large volume (greater than 3M). If the breakout does push through, we may see the stock aiming for the previous high near 4.25.

GLO (Chart: Daily Resistance: 900 Support: 762)

GLO has been bearish all year round, but looking at this daily chart, this stock may now be on its way out of its bearish situation with a possible double bottom. Previous low is near 762. RSI is now very much oversold so watch out for a possible bounce. The neck line for the double bottom is at 905, a break above that with large volume confirms the double bottom formation. The breaking of the neck line is still way too far, but one can make profits by trading the range from the current level to the neck line.

StockWatch (Nov 22-26, 2010): PSEi, ORE, ANI, ACR

PSEi (Chart: Daily Resistance: 4250/4300 Support: 4050)

Looks like the 65 day MA acted as support for the index, as it was able to bounce from the downward movement.

Trading last Friday created a white candle accompanied with large value turnover. We may be seeing an A-B-C corrective Elliott Wave in the making and as of current we may be in the start of the B wave. The B wave may reach up to 4250-4300 before continuing with the corrective C wave downward.

For next week, the upward movement may continue, but exercise caution as the downward corrective C wave may happen towards the end of next week.

ORE Chart: Weekly

ORE (Chart: Daily Resistance: 5.0 Support: 3.60)

ORE brokeout from the upward channel with a target price of 5.0, but aside from that breakout, there is also another breakout visible only from the weekly chart, which is a rounding bottom breakout with a target price of probably near 7.0

ANI (Chart: Daily Resistance: 15/18 Support: 12.70)

The bounce that I was expecting did not happen for this week. However, based on the trading last Friday, a white candle was formed with a very large volume, so this maybe the start of the bounce that I was expecting as the RSI has long been on the oversold level.

ANI has a possible double bottom formation, so be on the watch for a breakout near the resistance of 18.00

ACR (Chart: Daily Resistance: 1.62 Support: 1.50)

ACR brokeout from a rounding bottom last Thursday. The target price for the breakout is near 2.40

StockWatch (Nov 15-19, 2010): PSEi, SMB, ANI, NRCP

PSEi Weekly Chart

PSEi (Chart: Daily Resistance: 4413 Support: 3980)

The index had no respite from the successive sell down that happened the whole week last week. RSI even went below 50 which usually acts as support when RSI comes from the beyond the RSI high of 70. There is still no good indicator of a possible reversal, but based only from the RSI, which is now near RSI low of 30, there is a good possibility that either a short bounce or sideways movement may happen anytime within the week. Upcoming 65 day MA at 3980 might act as support, so watchout for any reversal indicators.

Looking at the weekly chart, the sell down that happened had large spread with considerable value turn over, so I don’t expect the index to continue its upward movement immediately. Sideways to downward movement may happen for the next 2-3 weeks before the index tries to continue its upward movement. But even with these, do watchout for possible bounce that may happen for the stocks nearing RSI of 30 and as much as possible, hold them only for the short term.

SMB (Chart: Daily Resistance: 11.50/12.00 Support: 10)

Amidst the sell down that was happening in the market, SMB was going the other way around defying general market sentiment. SMB brokeout from a symmetrical triangle with a possible target price of 12.00. As of last price, the target price is already near. Expect that this stock may still pack some punches to push through with reaching target price of 12.00, but after that, expect the stock to move downwards for the mean time

ANI (Chart: Daily Resistance: 15 Support: 12.50)

ANI may be one of those stocks that may bounce from lows. The stock is now near previous low of 12.50 and at the same time the RSI is way below the low of RSI 30. Because of these 2 coinciding instances, there is a higher possibility for the stock to bounce from support. Upcoming resistance is at 15, where both the 65 and 130 day MA are both located.

NRCP (Chart: Daily Resistance: 2.04 Support: 1.88)

NRCP brokedown from its upward trend and at the same time the 65 day MA, both of which are bearish signs for the stock. However, for the coming week, there may be a short bounce that would happen for this stock as the RSI is way below the low of 30 and at the same time, the stock is near an upcoming support at 1.88 which is the 130 day MA. There is not much profit for this stock at the current level, but if you are able to get hold of this stock at 1.88, this might give you a quick bang for the short term, but definitely this is not a stock to hold for the long term as the uptrend has already been broken.

StockWatch (Nov 08-12, 2010): PSEi, LCB

PSEi (Chart: Daily Resistance: 4413 Support: 4347/4273)

The index amazingly had another short bullish run, something which I did not expect at all to occur. The first trading day was good as we saw a white candle with value turnover that is relatively larger than the other white candles. However, the last trading day I believe is a bad sign, as an engulfing pattern was created. The black candle formed is longer than the previous candle and it just wiped out gains from the previous trading days. Not only that, large value turnover is also evident on the last trading day. For next week, expect the index to move downwards.


LCB (Chart: Daily Resistance: 0.50 Support: 0.36)

Support at 0.36 for LCB did hold last week, with the stock bouncing from the lows. There is probably a renewed interest for this stock as the last trading day had a relatively large volume compared to the past 2 weeks. Observe if by Monday, the volume still increases, if it does, then we probably have a breakout of a downward channel with a target price of 0.5.

StockWatch (Nov 1-5, 2010): PSEi, LCB, CPM

PSEi (Chart: Daily Resistance: 4299 Support: 4250)

The index moved downward to sideways last week. The MACD is still bearish and RSI is still overbought, there is still no good indication in the chart so expect further downward to sideways movement for the index next week

LCB (Chart: Daily Resistance: 0.42 /0.75 Support: 0.36)

LC B is about to reach a support level at 0.36, the upper level of the gap up that happened last September and at the same time the 65 day MA level. The index has been moving downwards since Sep and it is now near oversold level. A bounce will definitely happen for this stock, so be on the look out for reversal formations.

CPM (Chart: Daily Resistance: 2.55 Support: 2.06)

CPM is very much oversold with the RSI reaching below 30. This stock is definitely queued for a bounce from the low. As of current, there is a hammer formation last Oct 28 and trading last Oct 29 saw a black candle that is higher than that of the previous day. Come Monday if the stock opens higher, this is the confirmation of the reversal and a time to buy for the short term hold. Watchout for upcoming resistance at 2.52 which is the 65 day MA