StockWatch (Feb 18-22, 2013): PSEi

PSEi (Chart: Daily Resistance: 6542    Support: 6470/6400)

The index has moved higher last week, however, RSI was not able to move the same way.  There is a now bearish divergence in the chart between the index and the RSI.  This means put a hold on the buying and start selling portions of your short term positions.

The good side of this is that the Weekly chart does not share the same sentiment with the daily chart.  No bearish divergence is seen on the weekly, which means the upcoming bearish signals in the daily chart maybe for the short term only.

The 10 day moving average is currently providing support. If broken, the next support level would be near 6400.

StockWatch (Feb 11-15, 2013) : PSEi, CEB

PSEi (Chart : Daily   Resistance: 6490    Support: 6350/6270)

The index moved sideways last week which possibly indicates that the upward momentum is starting to lose strength.

It is now just above an existing resistance line connecting the peaks of Jan-May 2012. This now proves to be a strong resistance considering the sideways movement of the index last week.

For the coming week, watch out for possible bearish divergence where the index continues to move higher, but the RSI or MACD moves lower. If such an event happens, the next support would be around 6350 which is the 10 day moving average and 6270, the support line connecting the peaks of Jul 2012 and Jan 2013.

CEB (Chart: Daily Resistance: 67.50    Support: 66/65)

I have been following CEB for the past months and this might be a very fulfilling stock if a break out happens.   CEB is now in the brim of its resistance line at 67.65. Looking at the chart it is very visible that this is a rounding bottom considering the previous downward trend.

There are 2 possibilities for this stock.  One is that it is possible that this stock might breakout OR second, if the resistance line is strong, this would form a cup and handle formation, bringing the price downwards to form the handle part.  On both cases, breakout point is still the same at around 67.50 and the target price is around 83.