StockWatch (Nov 26-30, 2012): PSEi, JGS, GLO

 PSEi (Chart:  Daily Resistance: 5580   Support: 5480)

The index broke out from the ascending triangle earlier than expected.  I was still expecting it to consolidate for another week before breaking out.  But trading sentiment seems to be positive, probably due to the yearly window dressing by fund managers and buy backs by the companies.

Fundamentally the companies are still the same and company profit is not the main reason why the stock market index is breaking new highs.   While there is an advantage of profiting from the new bullish state of the market, do not however expect that this will last long.  Usually, by Jan or Feb, the stock market goes down again after the window dressing period is over.

When the RSI reaches 70, expect a pull back to happen with the index anytime by first week of December.

JGS (Chart: Daily   Resistance: 38.50    Support: 35.25)

Last week JGS had a sudden increase in volume and price creating a possible flag/pennant area pattern.

As long as the stock does not go below the 10 day moving average or around 36 price level, this stock is a good candidate to acquire considering the possible pennant or flag area pattern, which could take the stock near 45 giving a possible 10% return in a short span of time.

 GLO (Chart:  Daily    Resistance:  1150    Support: 1121)

There seems to be something brewing with GLO.   The stock has been consolidating for the past 5-6 months and it looks like in 2- 3 weeks time, something will happen to this stock.   Although I am not sure what will happen as it could either be positive of negative considering the symmetrical triangle the stock has been manifesting in its consolidation.
If a break out happens, we can see this stock moving towards 1400 level, otherwise, this could go as low as 900.

StockWatch (Nov 19-23, 2012): PSEi, CEB, ABS, ABSP

 PSEi (Chart: Daily  Resistance: 5490 Support: 5412)

Two weeks ago, an ascending triangle formation was seen from the index’s chart; however, it was still unsure whether it was an ascending triangle or just a sideways channel.    But as of trading action last week, we can somehow say that the ascending triangle formation is now more credible as the index stopped near the support line of the ascending triangle and rallied back on the last trading day.

I suggest keeping an eye on the ascending triangle formation, the breakout of the ascending triangle should happen in 2-3 weeks time.

 CEB (Chart: Daily Resistance: 62.26/67.50   Support: 59)

As I have previously posted, CEB is one stock that is good to accumulate for the long hold or for the cost averaging strategy.

CEB has been moving slow but steadily since October and the stock now seems to be forming a rounding bottom formation,  with resistance near 67.50. The target price for the rounding bottom formation is somewhere near 85.

It is still a long while before this stock breaks out, but I believe this is worth waiting for specially if you have been steadily accumulating this stock.

 ABS  (Chart: Daily)

ABSP (Chart: Daily  Resistance: 35.60/50   Support: 30)

ABS and ABSP  is rallying from its low of the year and there seems to be an active trading action with these stocks as it can be clearly seen that volume has accumulated since Aug.  

It might be that the current value of the stock deems it cheap for the actual worth of the company which is why trading volume has increased.  

But whatever reason it may be, the recent activity in these stocks show a possible breakout from a symmetrical triangle.  For ABSP it has a target price of near 45 while for ABS the target price is near 42.    However, there are lots of hurdles along the way for both stocks as traders who lost during its decline from May to Aug maybe selling while the stock moves back to their average price.

StockWatch (Nov 12-16, 2012): PSEi, FPH

 PSEi (Chart: Daily Resistance: 5490 Support: 5410)

The index almost created a new high last week, unfortunately it was not supported much that it fell and closed lower.

The current area pattern being formed by the index hints on a possible ascending triangle. The resistance level of the ascending triangle is at the previous high of 5484.   However, anything can still happen and the current ascending triangle seen on the chart may turn out to be a sideways channel after all.

FPH (Chart: Daily Resistance:  94.50 Support: 80.20)

FPH had a rally for the last 2 weeks and it now looks like the upward momentum will decrease a bit as the stock is very much overbought, with RSI reaching 90.  The stock may also have been affected by a resistance line near 93; the resistance line was the previous high since 2007.   So for next week expect a sell down of the stock.

StockWatch (Nov 5-9, 2012): PSEi

PSEi ( Chart: Daily  Resistance: 5445/5460    Support: 5400/5353)

From the upward channel formed two weeks ago, the index has now broken the standing upward channel and has begun to move sideways.   The sideways movement seems to be forming a symmetrical triangle or, if the current resistance at 5445 is broken and the next resistance at 5460 holds, then it would be a horizontal channel.

So for next week, range trading strategy is still recommended.  Do watch out if the symmetrical triangle holds or if it materializes in to a horizontal channel and adjust your range/stops accordingly.