The index moved sideways last week and we are in a little bit of uncertainty as to where the index would be heading. As of current, the index may probably move sideways between 4715-4855 range for the coming week.
The MACD and stochastics are now in a bearish situation both moving downwards. Again I would advise caution in further buying. I would probably change my strategy to from medium term hold to range trading.
The critical levels to observe are the following: 4855-previous high; 4715- possible support; 4615 – support line connecting the troughs from Jan. As long as the support at 4715 holds, the index may be able to continue its upward movement. Otherwise, a move below 4715 may push the index further down to the next support at 4615. Do observe if a head and shoulder formation materializes when index reaches 4615.
MEG turned out to be a disappointment. Seeing a symmetrical triangle, coupled with the recent bullish market activity, I was personally expecting this stock to breakout. Unfortunately, it went the other way and broke down.
The target level for this stock is around 1.10. A return move towards 1.70 is on the works. However, it is a wait and see if this stock would be able to further move upward as the white candle created last Friday clearly had no significant volume.
Next major support for this stock is near 1.50. This is also the same level with the previous low last Sept 2011. If this support level holds, then we may be seeing some good future for this stock, a possible double bottom.
BHI (Chart: Daily Resistance: 0.215/0.315 Support: 0.163)
BHI’s chart became intriguing as two white candles were formed last week, both with unusual volume. I couldn’t see any significant area pattern from which it broke out from, except a sideways channel, whose target price level has been reached last Friday near 0.20.
Based on the spread and volume alone, this is definitely a buy. However, do observe if this recent bullishness is supported by further white candles with large volumes. Based on the chart, BHI has a recent history of having white candles with large volumes that fizzles out after 1-3 days. If the recent bullishness checks out, then the next resistance would be near 0.315 which is a previous high.
No comments:
Post a Comment