In Retrospect: MEG, JFC, VUL, WPI

Checking on the previous week’s analysis

MEG

The price went down as low as 1.96 and rallied up again for two days. The descending triangle that is in its early formation is invalidated by the increase in volume during the Nov 28 downward movement. This downward movement further established a new support. Currently MEG is still a stock to avoid as the MACD is still in a bearish stance. If the price at 2.30 is not broken and instead a new lower peak is formed, it is a further confirmation of the bearish move.

JFC

The Nov 28 downward movement invalidated the ascending triangle being formed. But this downward movement established a support level at 39. Interestingly, the upward movement on the last day of trading during last week was accompanied by high volume, which increases the holders at 39-40 level, providing a strong support in those levels. Though MACD is still bearish, I believe that because of the increase in volume prices may start to move up, possibly trying to re-test the resistance at 42.

VUL

The pole formed for two successive trading days was followed by a flag formation, but was unsuccessful at breaking the resistance. Further correction may still follow as stock is already overbought.

WPI

The ascending triangle formation failed and broke the support. The MACD is now in a bearish stance.

StockWatch (Nov 27-30, 2006): MEG, JFC, VUL, WPI

MEG( Chart: Daily Resistance: 2.2 Support: 1.96)

As previously noted in the Stock Watch (Nov 13-17) post, the stock was in a bearish move which was further confirmed during the past week. The bounce up was not able to cover the gap created by the downward movement and it further slid down. Currently the stock is still bearish as MACD is still on a downward movement. The movement during the 2 trading days covered the gap up created by the bounce. The stock is in the position of forming a descending triangle. If it does reach the support of 1.96, this could be a further confirmation of the descending triangle

JFC (Chart: Daily Resistance: 42.50 Support 40.50)

JFC is forming a small ascending triangle with resistance at 42.50. If resistance is broken, we could see a move towards 46. But before reaching 46, it needs to break the previous high of 44. If the ascending triangle is broken successfully, we may see price to go beyond 44. If not, then 44 may be a strong resistance

VUL( Chart: Daily Resistance: 0.98 Support: 0.83)

VUL is a possible candidate for a Pennant/Flag formation. The pole is already establish, just waiting for the flag/penant

WPI (Chart: Daily Resistance: 0.68 Support: 0.59)

WPI is a possible ascending triangle with resistance at 0.68. But a volume of above 18M is needed for a good break out