In Retrospect: MERB, LND, GSMI

Checking on the previous week’s analysis

MERB

MERB topped out at 37 and headed to the 35 level. Expect further move downward possibly towards 33 level. Any further move beyond 32 may be an indication of further downward to sideward movement.

LND

LND broke the support and moved further below 0.7. Volume is still not that great so a lot are still holding on to their stock. Next support is 0.55, previous low or 0.62 the 65 day MA.


GSMI

GSMI made another gap down with high volume. Tried to move to higher price levels (21.75) , but was not accompanied by volume so it dropped the next day. There is still a big possibility of price moving below 20

StockWatch (Nov 20-24, 2006) MERB, LND, GSMI

MERB (Chart: Daily Resistance: 37.50 Support: 35/33/31)

MERB has broken an ascending triangle with volume, but not enough to characterize a good breakout. A pennant has also been formed, broken with very good volume and reached its target price. The things to look out for are the following: A. Another pennant formation. If this happens, then 37.50 resistance (previous high of 2004) can be easily broken. B. Downward movement if 37.50 is not broken. We could see a downward movement if 37.50 has not been successfully broken. Hopefully, it would just be a move towards the 35/33/31 support level. Any move further downward might result into a year long consolidation between 37.50 and 20.

LND ( Chart: Daily Resistance: 0.96 Support: 0.69 )

Interesting to note: The downward price movement is not accompanied by volume, which suggests that people are still holding on to the stock at 0.8-0.9 level. Currently price is now at 0.7 level and based on SMI we might see an upward move for this stock again.

GSMI (Chart: Daily Resistance: 21 Support: 18)

This is one stock to avoid, for now. GSMI gapped down with volume, which is a very very bearish event. Probably wait for the price to go down to 18-19 level before going in.