StockWatch (Mar 01-05, 2010): PSEi, ACR, APC, SINO

PSEi (Chart: Daily Resistance: 3133 Support: 3015/2946)

The index moved sideways for last week and for the last 2 trading days it seems that the index gained strength to move beyond the 65 day MA. But looking at the value turnover, the value turnover for the last 2 trading days were just average, so I still have reservations of calling the last 2 trading days as absolutely strong rally. Although there are some stocks that does exhibit a strong rally, but this is not the case in general. So expect the index to move sideways for the coming days. There is a possibility for the index to move further upward, but as of current I don’t see the index moving beyond the previous high of 3133.

ACR (Chart: Daily Resistance: 1.30 Support: 1.00/0.92/0.82)

ACR seems to have broken out of a falling wedge, which is a bullish indication. Target price for the stock is 1.25, but may have the possibility of moving beyond that level.

APC-Weekly

APC(Chart:Daily Resistance: 0.65/0.75 Support: 0.32)

APC for the last 2 trading days consecutively broke out of 3 area patterns with large volume: The first being the downward channel from Oct 2009 with the target already reached; Second is the sideways channel from Jun 2009 with a target price of 0.65; Last is the cup and handle formation as seen in the Weekly chart, with a target price of around 0.75. The stock is now very much over bought so expect a possible pull back of price by next week.

SINO (Chart: Daily Resistance: 0.35 Support: 0.26)

SINO also broke out of a downward channel from Sept 2009, with a target price of 0.35. Similar to APC, SINO seems to be forming a possible cup and handle formation, but unlike APC, it still has to break out of that area pattern, so upside potential of this stock is high.

StockWatch (Feb 22-26, 2010): PSEi, TUNA

PSEi (Chart: Daily Resistance: 3022 Support: 2940/2787)

The index continued its upward movement last week only to be stopped by the 65 day MA. Expect next week for the index to continue its downward movement. The downward movement on the last 2 days of trading last week was not accompanied by large value turnover relative to that of Wed’s trading, if the value turnover is still low on the succeeding trading days, there is a possibility that this downward movement would be short lived.

Upcoming support is at 2940, which is the 130 day MA. The crossing below the 130 day MA would be an important event to watch out. If the value turnovers of the downward movement on the succeeding days are low, the 130 day MA level could provide support for the index and possibly making it move sideways, moving in between the 65 and 130 day MA. As of current, the MACD is still below the center line, which still tells us that we shouldn’t be going long on the market for now.



TUNA (Chart: Daily Resistance: 2.06/2.16/2.26 Support: 1.86/1.60)

At the time when stocks are moving downward TUNA was pushing upward. Trading last Friday had a very large volume, but the stock seems to have been affected by the general downward sentiment of the market because of the large wicker of the candle which suggests that it was able to move higher but was unable to sustain the level. However, even if it was unable to sustain that level, it was somehow able to stay above the opening price which gave the stock a white candle.

The area pattern last week was a pennant formation and the trading last Friday was the breakout of this pattern. Target price for the area pattern is around 2.25, but there are a couple of resistances along its way up. The first resistance is at 2.06 which is the previous high reached last Friday. Next resistance is 2.16, which is the next previous high from Dec 2009.

Having come from the RSI low of 15 rising immediately to near 70 is definitely a bullish indication. Breaching the 70 level would be extremely bullish. For those who are not yet in this stock and would like to get a piece of action, I would advise caution in buying because the stock is already toppish. I have apprehensions of the stock breaking the 70 level because it started from the low of 15 and that alone is a very long walk. Do watchout for the volume of trading next week. If volume increases on Monday to more than 18M volume, with a white candle formation, then we are probably seeing an extremely bullish stock in play here and breaking 70 level would be a possibility. But if volume by Monday is lower than 18M, then start looking out for weakness on the resistance levels.

StockWatch (Feb 15-19, 2010): PSEi, ORE, MBT, ANI, CYBR, LIHC, MRC

PSEi (Chart: Daily Resistance: 3013/3133 Support: 2930/2797)

The index had a late rally, the downward movement extended for the first 2 days of trading last week and the expected rally only started on Wed.

For the coming week, I believe that the rally would still extend based on the large value turn-over last Friday. Upcoming resistance for the index is at 3013 which is the 65 day MA. I believe that this rally is not yet a time to go long. Though the MACD is starting to position itself for the cross above the signal line, the MACD is still below the centerline, which means we could buy but not yet for the purpose of going long on the stock. I am expecting that the 65 day MA and the previous high would prove to be a strong resistance and it would just push the index to move sideways, before moving south again.

General note: Beware of stocks that are moving upward with not much volume. These are potential bull traps.

ORE (Chart: Daily Resistance: 2.3 Support: 1.52)

On the onset of the rally, ORE has broken out of a flag formation. Volume last Friday was very large so expect for the rally to continue next week. Target price for this stock is at 2.3

MBT (Chart: Daily Resistance: 43.50 Support: 39)

MBT also has broken out of a downward channel. Target price for the stock is at 43.50, but has the potential to reach 45 which is also the 65 day MA

ANI (Chart: Daily Resistance: 25 Support: 16)

ANI does not have any area pattern where it has broken out from, but I believe that this has potential of moving towards 25. Volume last Friday was relatively the same as the volume last Tuesday, so the bulls are slowly moving back. It is possible that we might be seeing a V formation here if volume on Monday would be the same as volume last Friday.

CYBR(Chart: Daily Resistance: 0.75/0.87 Support: 0.70)

CYBR’s daily chart is very promising. Last January the stock formed a symmetrical triangle which broke out on the last week of January, with the target price nearly reached. This time around, there is another possible symmetrical triangle forming, with resistance at 0.75. This has a potential target price of 0.96.

But zooming out further, we are probably witnessing the formation of the right side/wall of a rounding bottom area pattern. The left side of this formation started last July of 2009 and it seems we are near to the completion of the right side. This has a potential upside of 1.25. So be on the lookout for the breakout of this stock.

LIHC (Chart: Daily Resistance: 8/8.50 Support: 5.00)

LIHC does not have any area pattern where it broke out from, but trading last Friday had a very large volume that it is hard not to notice this stock. This stock has the potential of moving towards 8.50 which is the level where the 65 day MA and 130 day MA are converging. But before it reaches that level, it has to break above the 260 day MA at 8.00.

MRC (Chart: Daily Resistance: 1.06 Support: 0.77)

MRC has the potential of forming into another flag formation, with trading last week forming another possible pole for the flag formation. But you’d have to be cautious in buying this stock because it is currently very much overbought. This may at anytime give in to selling pressure.

PSEi (Chart: Daily Resistance: 2920 Support: 2826)

The downward target value for the double top formation of the index has nearly been reached with the lowest being registered last Friday at 2826. The index had a short rally only to be stopped by the 130 day MA. For those who were able to scoop up some stocks last Wed and Thurs but was caught off guard by the dip that occurred last Friday, I would advise them to hold on to their stocks for a while because I believe last Friday’s trading brings good news to those who were surprised by the turn of events.

Last Friday’s trading opened lower, dipped further in the middle of trading but was able to recoup from the big dip. This I believe is a sign of strength, this means bullish traders were able to counter the effects of the bearish traders by regaining the dip and closing near the opening value. This, together with the relatively large volume last Friday and the RSI oversold condition of the index will prop the index back to re-test the 130 day MA and possibly re-test the support-turned-resistance level at 2979 by next week.

The possible rally next week I believe will not last beyond the 2979 level or the 65 day MA level, so don’t go long on your positions. For those who were stuck due to Friday’s dip, this will be a good chance to sell.

General Note: There are a couple of stocks that are very much oversold (RSI below 30) like TEL and AC. These maybe opportunities for a quick and small profit, just don’t go long yet on the stocks.



CPM (Chart: Daily Resistance: 4.55/5.00 Support: 3.20)

CPM does not have any area pattern formation but last Friday, the stock had a white candle with relatively large volume. That incident, coupled with a very oversold RSI level of 15 will probably boost the stock upward next week. You can buy at the current level and wait for the stock to reach 4.50 to 5.00 before selling. Watchout for the volume, if the upward movement next week is not much supported by larger volumes, better sell your position even with just a small profit.

BPI (Chart : Daily Resistance: 45.50/47.50 Support: 43.50)

BPI doesn’t have any area pattern breakout, my attention was just caught by the very large volume on the white candle formation last Friday. If the volume is real (not just due to some cross transactions), then this is a very good sign for the stock. Any stock on a downward motion will continue to move lower and only a bullish action (in this case a white candle) with large volume can counter the movement, which for BPI’s case happened last Friday. So for next week there is a higher possibility for the stock to continue moving upwards, possibly testing the support-turned-resistance at 47.50. Upcoming resistance is at 45.50, which is the resistance for the sideward channel area pattern, if this level is broken with large volume, we can expect the stock to reach 47.50