StockWatch (Jul 26-30, 2010): PSEi, JGS, PNB, RCB

PSEi (Chart :Daily Resistance: 3485 Support: 3402)

The resistance line that was broken last week provided support for the index and enabled it to move sideways. For the coming week, I am more inclined to say that the index might not be able to move upward for the mean time as trading last Friday moved the index higher but closed lower and formed a black candle accompanied by high value turnover. Expect further sideways movement for this coming week. The resistance line turned support is something to observe for the coming week. If it is able to provide support for the index, this might be a sign that the index will move higher and it is just consolidating above the support line.



JGS (Chart: Daily Resistance: 17.50 Support: 16.25)

JGS is still a viable option to rake in some money. JGS made a return move towards support at 16.25 and never went below the support line. While on the return move to support, the volume was not large enough to cause problems, instead it just gave opportunity to accumulate more JGS at a lower price. Trading last Friday created a white candle accompanied by large volume and is definitely a very visible sign that the index is now on its way up towards the target price of 19.


RCB (Chart: Daily Resistance: 25 Support: 21)

The stock brokeout from an ascending triangle with large volume. Target price is at 25, but the recent breakout diminished the returns. Watch out for a return move towards support, if this happens and support holds, then this is an opportunity to buy more of the stock

PNB (Chart: Daily Resistance: 44.50 Support: 30.50)

The stock broke-out from a symmetrical triangle last July 13, but the target price of 40 has been reached. Trading last Friday still propelled the stock further above the target price accompanied with large volume. The volume that accompanied that upward movement last Friday tempts one to buy more, however, looking at the RSI, the stock is very much over bought. Anytime soon, the stock will start to move lower, so exercise caution if you plan to buy this stock.

StockWatch (June 15-18, 2010): PSEi, PNB, NRCP

PSEi (Chart: Daily Resistance: 3372 Support: 3211)

The index moved lower for this week with a big gap down on the first trading day of the week. It seems that bulls are unable to propel the index beyond the previous high. On the last trading day for the week we see the index trying to move higher, but the bears are still fighting and we are left again with a stalemate position with the opening value near the closing value, but with a bias for the bears as the closing value is lower.

For the coming week, expect the index to move sideways and probably would recover by the end of the week. Still observe the resistance line from June 2008 and support at the 65 day MA level (3211).

PNB (Chart: Daily Resistance: 30.50 Support: 28.50)

PNB is exhibiting a symmetrical triangle formation. The stock is near the apex, so we might be seeing either an upward or downward breakout for this stock. Upward target price is 40 while downward target price is below 20. Watch out for a possible breakout or break down of the formation.

NRCP (Chart: Daily Resistance: 1.72 Support: 1.54)

NRCP brokeout of a symmetrical triangle with an upward target price of 1.75. Target price is already near so expect resistance on the 1.75 level. This stock however, has the potential of moving further up as the MACD is widely opening upward and above the centerline.

StockWatch (Mar 17-19, 2008): PSEi

PSEi (Chart : Daily Resistance: 3000 Support: 2870)

The index went lower than the recent previous low of 2950 and proceeded to its lowest for the week at 2890. Next support is the previous low of August 2007 at 2874. Looks like a double top, but ofcourse this is still not confirmed not until the support line (which is the previous low) is broken. However, a lot of stocks are already very much oversold and badly sold down since January 2008, so there is still the possibility of a bounce from the previous low. Looking at the RSI and MACD, we can also see a possible bullish divergence. Watch out for UP days that are not accompanied with large volume. With the recent continuous downward movement of the index, as well as most of the stocks, a large volume is very much important to validate an upward move. Trading strategy would still be to stay on the sidelines, watch out for a possible bounce from the support or break of resistance line with volume. Trading for this week might be lethargic sideways movement as a lot may be on vacation mode already for the coming long weekend.

The following stocks exhibit very low RSI’s: ALI(20) , FPH(18), PNB(19), VLL(14). Watchout for possible bounce from the recent downward move, but ofcourse the low RSI does not guarantee this bounce as the price may still move lower even if RSI is already the lowest of all stocks. Look for large volume on upward movements.