StockWatch (June 21-25, 2010): PSEi, AJO

PSEi (Chart: Daily Resistance: 3362/3376 Support: 3224)

The index gapped up on the second day of trading. However, there was no follow through on the succeeding days.

For the coming week, again observe the movement towards the long standing resistance from June 2008 near 3362/3376. It is possible that once the index reaches that level it would once again move downwards.

AJO Weekly Chart

AJO (Chart: Daily Resistance: 0.045 Support: 0.034)

AJO brokeout from a downward channel with a target price of around 0.041. The current price is already near the target, but based from the weekly chart, there may be some future for this stock. The weekly volume was relatively large, giving credence to the recent upward movements. In addition the RSI still has room to move upward.

Looking at the larger picture, the recent upward movement may be the second leg of a possible double bottom formation with the first leg formed around Dec of 2008. The neck line of the double bottom is at 0.0725, so from the currently price level, there is still a long way for the stock to go.

In Retrospect: DMC, AJO

DMC

DMC still hasn’t reached the target price of P13. Price was stopped at P12 and opened lower on the first trading day. What I think was positive for this stock was that during the days that it was sold down, volume was low. This might be an indicator that a lot are still bullish with this stock and are still holding on to it. On the last trading day, the stock opened and closed on the same price level, so this means anything can still happen by next week. As of current, resistance is still at P12 and there maybe support at price levels 10.75-11.25. This may consolidate for a while, but considering the position of the 65 day MA and the 130 day MA, this looks like it is poised for a cross over and continue the upward move. The crossover may be used as a buy signal.

AJO

AJO was also stopped from achieving the target price of 0.21. Bullishness is still with the stock because even if there was large volume on the sell down on Wed, there was just as must trades on the day after where the stock was bought up. However, this stock will still further consolidate and the condition may still shift. As of current support is at 0.15. The 65 day MA crossover with 130 day MA can be used as a buy signal.

StockWatch (Nov 05-09, 2007): PSEi, DMC, AJO

PSEi (Chart: Daily Resistance: 3800 Support: 3680)

The index gapped down on the first trading day after the Glorietta 2 blast. The previous falling wedge that I was expecting to form was invalidated by the gap down. Currently the index was able to cope with the gap down and has now covered the gap that was made. The gap down that happened seem to have made a symmetrical triangle formation with the index. Index at 3,800 is currently the resistance and support at 3680. Upside target for the symmetrical triangle is at 4100, the downside is at 3380. There is still a high possibility that we may have to redraw the triangle or it may also be invalidated. It's still a wait and see for our index considering that the Dow has recently suffered another 200 points down last week. Plotting the Bollinger Band on the chart, it looks like a move will occur anytime soon as the bands are constricting

DMC( Chart: Daily Resistance: 12 Support 10.75/10.25)

DMC broke out of the ascending triangle during the 2 trading days last week. Target price for the ascending triangle is at P13. At the current price level of 12, it is already very risky to get in. There may be profit taking next week as some may lock in their profits at P12

AJO (Chart: Daily Resistance: 0.15/0.17 Support: 0.13/0.12)

AJO broke out of a symmetrical triangle. Upside target of 0.21. Resistance at 0.15 and 0.17 which are the previous highs. Support at 0.13. Sell when it goes to 0.12. This means weakness in the breakout if it moves to 0.12

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.