StockWatch (Sep 08-11, 2009): PSEi, MIC

PSEi (Chart: Daily Resistance: 2895 Support: 2774)

The index continued to move downward and no break-out from the ascending triangle happened. Even though the index moved lower, it is somehow respecting the support line formed from March 2009 preventing it from moving downward any further.

The ascending triangle I think has this week as its last chance to break-out. If nothing still happens, then we would have to redraw again.


MIC (Chart: Daily Resistance: 4.70 Support: 3.90)

MIC had a breakout from an upward channel. Target price is at 5.30. This is definitely a buy, but be on the look out for a return move toward 3.90.

In Retrospect: COL, BPC, MIC

COL

COL retraced 60% of its recent short upward move placing the stock near the resistance line of the symmetrical triangle. As of current even with the recent downward move, the stock still displays some bullish signs. The MACD is still above the signal line, the MA’s are still in the proper order, and the volume on the downward move were not accompanied by volume as there was more volume on the days when it was bought up, than when it was sold down. If this stock is still bullish, it may be able to pull up above the 65day MA and hopefully consolidate and hold its position above the MA. Otherwise, if the stock has really turned bearish, we can confirm it if it breaks the 10.75 support.

BPC

BPC was unable to hold its position above the resistance-turned-support line and went back in the triangle on the last trading day. This stock may still move further downwards probably reaching 3.80.

MIC

MIC did not break out from the symmetrical triangle last week. Instead it consolidated further. The price action is now near the apex of the symmetrical triangle, there is a higher possibility that we may have to redraw our triangle. What this stock currently needs is for it to consolidate in between 7.30 -7.80, the price levels of the previous gap down last October so as to eliminate resistance coming from those still holding position at those levels. For the coming week, this stock will probably move down to sideways. Watch out for support at 6.10

StockWatch (Dec 10-14, 2007): PSEi, COL, BPC, MIC

PSEi (Chart: Daily Resistance : 3770/3810/3890 Support: 3680)

The index showed further bullishness as it was able to open higher on the first trading day last week. This bullishness was further supported by the 4 other actions by the index. First is the gap up that happened on Thursday, which led to the second action which is the breaking of resistance line established from the recent downward trend. The third is the closing of the gap from the first week of November and fourth is the MACD crossing above the signal line. The breakout from the resistance line is just a confirmation of the recent upward move, however it is still not a breakout from an area pattern as we do not have a valid area pattern for now. For the coming week, we may see the index consolidate in a sideward movement and may also re-test the resistance-turned-support line. The sideways consolidation is what is best for the index as it has now recovered 60% of the recent downward move from October and it still has not consolidated. Any further upward move might place the index in levels where the bulls might not be able to support.

COL (Chart: Daily Resistance: 14.50 Support: 10.50)

This stock was featured by Bonner at the Absolute Traders website. It has formed a symmetrical triangle with resistance at 14.50. Possible upside target price of 22. For those doing range trading, you can buy at 12.50, sell at 14.50, cutloss at 11.75. As of current the stock is now bullish as it has gone past the 65 day MA and MACD is now above the signal line. Average volume is around 1M, a good break out volume should be above 4M

BPC (Chart: Daily Resistance: 4.65/4.85 Support: 4.35)

BPC seems to have broken out of a symmetrical triangle formation, however I am not quite sure about the volume on breakout. It was accompanied by large volume, but I am not sure whether it is sufficient. The stock is currently re-testing the support line. What we need to see is for the volume to pickup for the coming days. Also what is noticeable in the chart is a head and shoulder formation that did not push thru. However it cannot be considered as a failed head and shoulder as it did not break down, so it is currently more of a symmetrical triangle. Target price for the triangle is around 7. MACD is bullish, but RSI is near overbought, so there might be some further re-testing of support for the coming days.

MIC (Chart: Daily Resistance: 7.50 Support: 6.80/ 5.60)

MIC is also a candidate for a symmetrical triangle. Breakout point is 7.50 Target price is 15. MACD is currently bullish and RSI is just halfway from being oversold. Average volume is around 4M, a good breakout volume is around 20M shares.

In Retrospect: MIC, PLTL, MPI, WEB

MIC

MIC has had a hard time breaking above the 8.70 resistance level. It was able to do so once, but price fell back in consolidation for the same day. On the other hand even if it was not able to maintain a position above 8.70, price was able to maintain the support on 7.80 level. As of current, MIC is consolidating in a small sidewards channel between 7.80 and 8.70. If price continues to move below 7.80, it would be best to sell considering it has consolidated for 2 weeks and a move towards 7.80 means a stale mate has been broken between the bulls and the bears and definitely the bears win if price goes below 7.80. Next support at 7.70/7.10/6.10.

PLTL

PLTL’s price has consistently closed at or above 8.00 the previous week. It was an unexpected move for PLTL to break the support at around 7.80, bringing the price down to 7.40. It fell 10 cents short of reaching the downward target of 7.30. This is one of the rare occasions that an ascending triangle breaks down. If price would still rally by Monday, this would be a good time to sell, considering that MACD just turned bearish.

MPI

The flag/pennant formation for MPI did not materialize. Instead a spike happened on the second trading day, opening at 5.30, achieving a high of 5.80, before closing again at 5.30. Currently it has found support at 5.00, but price may still move further down or sideways movement for the coming week.

WEB

WEB is dangerously moving near the apex of the symmetrical triangle. A breakout or breakdown may happen soon. Otherwise we have to redraw our charts. As of current the 130 day MA is providing support at 0.0525. I’m more to expect a breakdown from this stock because of the following bearish indicators: 1.) the 65 day MA moving below 130 day MA, 2.) MACD crossing below the signal line. 3.) RSI has consistently stayed near oversold level. The next support levels are 0.0525/0.048/0.042

StockWatch (Oct 15-19, 2007): MIC, PLTL, MPI, WEB

MIC (Chart: Daily Resistance: 9.20/ 10.00/ 11.50 Support: 7.80/6.50)

MIC gapped up with volume on the first trading day. Target price of P13.00 is not yet reached. Price is currently near 8.10. MIC has currently developed into a flag/pennant formation with a target price of 11.50. Support is currently at 7.80, resistance at 9.20 and 10.00.

PLTL (Chart: Daily Resistance: 8.10 Support: 7.60)

PLTL also gapped up with volume on the first trading day. Currently it is consolidating inside a small ascending triangle with a target price of around 8.60. The target price of P9.00 for the ascending triangle where it broke out from (at 7.30) is still not achieved. Getting in at this point is a little bit risky as price is in its halfway point.

MPI(Chart: Daily Resistance: 5.30/5.50/5.80 Support: 4.60/4.20)

Large volume for MPI for the last 2 trading days. This is a candidate for a flag/pennant formation.

WEB (Chart: Daily Resistance: 0.060 Support: 0.055)

WEB is currently in a symmetrical triangle. For the short term, it is consolidating inside an ascending triangle with resistance at 0.060. If it breaks out of the ascending triangle, target price is at 0.075. A breakout from the symmetrical triangle would have a conservative target price of 0.085.

StockWatch (Oct 8-12, 2007): PSEi, PAX, TUNA, MIC

PSEi (Chart: Daily Resistance: 3820 Support: 3600)

..and the Bulls are back! Of the 2 resistance I pointed out last week, we have successfully surpassed one of it, which is the gap down last July and with good increasing volume! As of current we are just a few points away from creating a new high. If the previous high is taken out, that would be the official opening of the bull season, so get ready to ride the bull! Thing to watch out though is the RSI, which is now overbought. Any downward move is welcome as long as the index does not go below 3600.

PAX(Chart: Daily Resistance: 13.50 Support: 11.25)

We have a mixed pattern for PAX. A symmetrical triangle and a falling wedge. The symmetrical triangle broke down with a target price of 9.00. However the breakdown has formed a lower low creating a falling wedge with a target price of 16.50. At this point either of the 2 patterns is a possibility. If by next week price moves above 12.25, the falling wedge is confirmed, otherwise if price moves below 11.25 the symmetrical triangle is confirmed. As of the moment, the chart is exhibiting a bullish divergence with price forming a lower low and MACD and RSI forming a higher low. However, again, this is still not confirmed, if price moves lower, MACD and RSI may follow invalidating the current divergence we are seeing.

TUNA(Chart: Daily Resistance: 2.10/2.60 Support: 1.86)

TUNA brokeout from a small symmetrical triangle and target price was immediately achieveh. However, this can still be a candidate for a flag/pennant formation. We now have the flagpole formation. It is possible that further extension to the pole may form next week.

MIC (Chart: Daily Resistance: 8.10/9.20/11.50 Support: 6.10)

MIC brokeout from a symmetrical triangle. Target price is at 13.00. Upcoming resistance at 8.10 which is the 61.8% Fib retracement and 9.20, the previous high.


General Analysis: A lot of issues already brokeout from a triangle formation or a breakout from a trend with sufficient volume.. Watch out for the following. PA, MBT, PLTL, FDC, WEB

In Retrospect: TBGI, MIC, GEO

TBGI broke the 2.50 resistance but was only able to move up to 2.55 before moving downwards. The price was blocked by the 130 day MA and moved to as low as 2.30. The symmetrical triangle is still intact and the MACD has now crossed above the zero line. Price action may move side to down this week probably a chance to get the stock near support level of 2.14. Recommendation: Watch out for support at 2.26 (65 day MA)/2.14 (trend line), these are levels where it would be good to buy. Cut loss if it goes below 2.10

MIC consolidated on the first 3 days of trading with 3.15 as resistance and move higher on the fourth day up to 3.60. The last day exhibited profit taking as the price went from 3.60 down to 3.30 closing at 3.40. Next resistance is at 3.80. There was no follow through with the volume after the breakout. RSI is currently overbought, so expect for the stock to move side to down. Recommendation: Sell a part of the position and buy back at a later time if the price moves down. MACD still looks good, so if RSI goes down from being overbought with price still moving sideways instead of down, start buying back. The next resistance at 3.80 is the target price for the Feb-April ascending triangle.


GEO went further down to as low as 1.76.

StockWatch ( April 23-27, 2007): TBGI, MIC, GEO

TBGI (Chart: Daily Resistance: 2.50/2.90/3.35 Support: 2.24/2.14)

TBGI broke out from a sidewards movement with very high volume. If the upward movement would still continue, it may break out from a symmetrical triangle with resistance at 2.50. The target price for the symmetrical triangle is 4.15. Recommendation: Buy on breakout. Expect resistance at 2.90 and 3.35 level. If you buy at 2.60, cut loss is at 2.40.

MIC (Chart: Daily Resistance: 3.15/3.40 Support: 2.60/2.44/2.30)

MIC has broken out of the long symmetrical triangle. Conservative target price is at 4.90/5.0. Next resistance is at 3.15 and 3.40, which are previous highs. Recommendation: Buy. Succeeding trading days should have the same or higher volume; otherwise it may find it hard to break the coming resistance levels. If upon reaching near resistance level, price movement shows weakness, sell a portion a buy back at a lower level.

GEO (Chart: Daily Resistance: 2.14 Support: 1.90)

GEO is displaying a divergence of MACD from the price movement. MACD displayed lower high, while price displayed a higher high. The recent break above 2.0 with less volume seems to indicate that not a lot are interested with the stock at that price level. Recommendation: Sell.

In Retrospect: MEG, MIC, MBT, AJO

MEG broke out of the ascending triangle with significant but insufficient volume. The valid break out volume should be at least 200M shares traded, the actual break out volume was around 70M shares. Even though the stock did not have a valid breakout, it remains bullish according to the MACD. Need to watch out though, as the stock’s price moves higher creating higher highs, the MACD also needs to create the same thing, otherwise, we might be seeing a divergence of price and MACD. Recommendation: Hold until the divergence is confirmed, if the divergence is confirmed, start selling on rallies.


MIC traded sideways this week. The 2.40 price level held its ground. The stock may still move sideways to downward this coming week. So still watch out for 2.40 and 2.30 levels for buying opportunity.


MBT price movement went sideways last week. Target price is still not reached. A noticeable event last Wednesday’s trade is that volume picked up significantly to 6M shares traded. Hopefully the increase in volume will help in closing the gap between 63.50 and 66. Recommendation: The stock can still be bought at the 62-63 price levels.


AJO H&S pattern is still intact. We are still waiting for the break of the neck line. Currently, the 65 day MA at 0.70 seems to have provided a temporary support for the price. MACD still doesn’t look good, but price may still have a temporary sideward to up movement delaying the downward move. Recommendation: Sell on rallies.

In Retrospect: MERB, MEG, UPM, MIC, AEV

MERB ‘s “looks as if” did not materialize. MACD crossed upward but went back below the signal line while price moved sideways and has touched the support line on the last trading day. On the coming week watch out for the support line at 69 and the resistance line at 72, the symmetrical triangle is intact, but it is now near the apex, so there is a high probability of the symmetrical triangle being invalidated.

MEG had a failed break out from an ascending triangle. Price broke the resistance line at 3.30. Volume only came in when the price pulled back below 3.30. Interestingly, even if the ascending triangle is invalidated, we can expect another ascending triangle in the formation, with resistance at 3.45 and target price at 4.30


UPM also had a failed break out from a symmetrical triangle. Volume was very high on the breakout day, but it failed to sustain the upward move. Price went as high as 0.85 but closed just 1 fluc above the opening price. It is now forming an ascending triangle with reisstance at 0.85. But the volume from the failed break out somehow invalidates the pattern. Who knows maybe the price movement will just inch its way up as MACD is already indicated a buy long signal.

MIC moved sideways before the failed breakout from a symmetrical triangle. Volume was significantly high on breakout point, but was not sufficient enough to indicate a proper break out. Price may still move down to sideways this coming week so watch out for support at 2.40, 2.30, 2.18 and 1.96. Though the previous symmetrical triangle resistance did not hold, we can still expect a symmetrical triangle, but this time with a higher resistance level.
AEV tried to rally on the last day of trading, closing higher but has signs of weakness as it was unable to move above the 65 day MA. We could expect some up to sideways movement this week with the 65 day MA acting as resistance, but if the following trading days is still accompanied with low volume, the descending triangle still holds, the rally just adjusted the resistance level. A chance to cash in on the rally, better to be liquid than sorry.

StockWatch (Mar 26-30, 2007) : MERB, MEG, UPM, MIC, AEV

MERB (Chart: Daily Resistance: 62/73-75 Support: 67.50)

MERB looks as if forming a symmetrical triangle. MACD looks as if it is about to cross over, but all of this is just “looks as if”. Watch out for resistance at 73, if price breaks out, target price is around 85. The breakout has to have a big volume as it has to struggle on its upward move because of the resistance along the way up. Recommendation: Buy only on break out. Watch out for resistance levels 75, 78, 80

MEG (Chart: Daily Resistance: 3.30 Support: 3.10/2.95)

MEG is forming an ascending triangle. A gap up with high volume happened last Thursday which suggests the stocks strength. MACD has slightly crossed above signal line. The resistance at 3.30 needs to be broken with high volume, otherwise if there was no volume, the movement might be stopped by another resistance at 3.45 and may probably move back in the triangle. Recommendation: Buy on breakout only. The price movement is very near the apex of the ascending triangle, there is still a high possibility that the formation might be invalidated. The target price is at 4.0. You can still buy this stock at 3.50-3.60 level for a substantial gain if it does move with volume. Volume needs to be higher than 100M trades.

UPM (Chart: Daily Resistance: 0.80 Support: 0.69)

UPM is forming a symmetrical triangle. But it currently needs to break out from the 65 day MA. This stock still has a long way to go before breaking out. One good sign though is the MACD crossing over signal line and the upcoming cross above the zero line. Let’s see what would happen in a couple of days. This stock could either move above 65 day MA or trade the range within the 65 day MA and the support line.

MIC (Chart: Daily Resistance: 2.50 Support: 1.58)

MIC is also forming a symmetrical triangle. At this point, the price may still trade the range. If price does break out of the area pattern, target price is 4.80. Recommendation: Buy only on break out. Buying at this level might be costly as price may still move either sideways or downwards.

AEV( Chart : Daily Resistance: 8.30 Support: 7.80)

AEV is forming a descending triangle. Price movement has respected the resistance line on 2 occasions and on the last 2 trading days; AEV touched resistance for the third time at 8.40 and fell back. At this point, the price movement is squeezed by the resistance line and the 65 day MA. Price may either move sideways if the 65 day MA would hold, otherwise the price may move further down, re-testing support at 7.80 or 7.70. If the descending triangle holds and price breaks down, price may move further down to 6.0 level. Watch out for support at 7.20, the long term support, the 130 and 260 day MA on its way down.

InRetrospect:MIC, MERB, GLO, MWC

MIC

Though the pennant formation was still intact on the first day of trading, the proper break out did not happen on the second day of trading as the volume was not sufficient. The price movement for the remaining days was still accompanied with volume, but there seems to be a standoff between the bulls and the bears as the opening and closing price were near or the same.

MERB

The ascending triangle was invalidated as the price broke the ascending triangle with insufficient volume. Price might move down to sidewards this week as the stock is already very much overbought and last Friday’s volume might be a sign that a lot of traders are starting to cash in on the profit.

GLO

The bulls were able to avert the gap down that happened previously. Price went sidewards, then gapped up. For this week, there is still room for price to move upwards, but it first has to surpass resistance at 1280

MWC

8.80 proved to be a strong support as price bounced off from this level. Currently 9.50 is the immediate resistance. Though price is now moving upward, we still need to see an increase in volume in order for the price to continue moving upward.

StockWatch (Jan 15-19, 2007): MIC, MERB, GLO, MWC

MIC (Chart: Daily Resistance: 2 Support: 1.85)

MIC is showing signs of Flag/Pennant formation. The pole was formed for 2 days and last Friday’s trading has started the pull back to form either a flag or pennant. This week, price may move side to downward. Recommendation: Wait for another day to see if formation is still intact. If formation is still valid, buy near support at 1.85.

MERB( Chart: Daily Resistance: 59.50 Support: 55)

MERB is forming an ascending triangle with resistance at 59.50. A possible upside of P8 can be realized if the ascending triangle is broken with volume. At this point it might still be too early for the price to break out of the triangle. Price may still consolidate within the triangle. Recommendation: We may see an upward movement this week and you might be buying near resistance if you buy early. Wait for price to pull back from the resistance level before buying (probably near 55-57 level)


GLO (Chart: Daily Resistance: 1210 Support: 1180/1160)

Price gapped down during the last two trading days and went as low as 1180. It is currently evident that bears rule movement of this stock. There is a possibility of a short upward or sideward movement. If bears still continue to push the price below 1180, next support is at 1160. Recommendation: Wait and observe, price may still go down to 1160 and below as MACD is opening downward and support level since June was broken.

MWC( Chart: Daily Resistance: 9 Support: 8.80/8.50)

MWC also broke the support line extending from June and is currently way below it. Recommendation: Wait and observe. MACD currently shows a negative outlook for this stock, but the RSI is near oversold level and note also that volume is diminishing which might be indication that sellers are getting thin. We may see either down or sideward movement. If support at 8.80 is broken, next support is at 8.50.