PSEi (Chart: Daily Resistance: 4346 Support: 4260/4207)
The index moved sideways last week with the moving averages providing support for the index. It looks like we will be on a sideways movement again next week as several support areas are just near the current index level. Two moving averages are currently providing support, the 10 and 100 day moving average. Just a little bit below that, we can see the support line from Sep of this year at 4260. Then afterwards, there is another possible support line, which is the previous low at 4207 and just a little bit down below that level are the 50 and 200 day moving average. With a lot of support along the way down, it is highly possible we may see the index moving sideways between 4207 and 4346.
One of the things to look out for the coming weeks is the possibility of a bearish divergence happening. Currently the stochastics and the RSI are moving downwards, if the index makes a short rally upward and the indicators still continues to move downwards, we may be seeing a bearish divergence happening. But again, this is just a possibility that we need to closely monitor.
GLO (Chart: Daily Resistance: 965 Support: 890)
GLO seems to have formed a small inverse head-and-shoulder (see the small markings on the right side) area pattern. This is a bullish pattern and when this breaks out, we can project the price to reach near 1100. As of current, this stock may have already broken out of this pattern, with trading action last Friday creating a considerable spread with large volume.
When the target price is reached, we may be one step closer to a much larger opportunity for this stock. Zooming out of the chart, we can see that this stock has a double bottom formation, just waiting to breakout. The break out from the inverse head-and-shoulder would put the double bottom formation nearer the resistance or breakout line. But unfortunately, this is still to be seen and it may take maybe more than a month before this materializes.
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