StockWatch (Oct 11-15, 2010): PSEi, GMA7, APC

PSEi – Weekly chart

PSEi (Chart: Daily Resistance: 4350 Support: 4222)

The index has been continuously moving upward with intermittent short downward movement. It looks as if this kind of action in the market may continue for 2weeks to another month before a major correction happens. The daily chart is showing negative divergence between the RSI and the index which could signal an upcoming downward movement. Looking at the weekly chart, the RSI shows an overbought level that supports the possibility of an upcoming correction. For the coming week, you could either stop accumulating for the mean time or start disposing a portion of your portfolio and buy back after the upcoming correction.

Note: A lot of stocks have reached or about to reach their previous high which means strong resistance is being encountered or will be encountered thus a possibility of sideways to downward movement.

GMA7 (Chart: Daily Resistance: 8.80 Support: 7.25)

GMA7 had a breakout from a downward channel with trading last Friday creating a gap and a tall white candle accompanied with large volume. It looks like this upward movement is a bounce from support near RSI of 50 coming from the RSI high. The MACD is also looking good with a possibility of a cross above the signal line. The only problem with this stock is that resistance is near at 8.80 (previous high).

APC (Chart: Daily Resistance: 0.95 /1.28 Support: 0.84)

APC also had a breakout from a sideways channel accompanied with a large volume and a gap. Target price is near 0.95. The MACD is also about to cross above the signal line, so there may be more to this stock beyond the target price.

StockWatch (Aug 17-21, 2009): PSEi, CMT, GMA7

PSEi (Chart: Daily Resistance: 2894/3051 Support: 2780/2626)

The index is currently moving in a tight ranging movement from 2780 to 2894. Previous resistance at 2780 is providing support; this is also the previous high of Sept 2008. It is possible that the index may further move sideways for next week. As of current, index is still overbought; keep watch of the RSI nearing the 50 level as this may provide support and index may continue to move upwards from there.

CMT (Chart :Daily Resistance: 1.06/1.45 Support: 1.02/0.98/0.76)

With all other stocks that have been zooming past the RSI of 70, CMT is one of the laggards in the race. It seems that this stock has just recently had a breakout from a symmetrical triangle. Target price is near 1.45, which is also a resistance area.

GMA7 (Chart :Daily Resistance: 8.00 Support: 6.80/5.90)

GMA7 had a very large spread last Thursday, which was accompanied with large volume as well. It is possible that this stock may be forming a flag or pennant formation with the pole which formed last Thursday. Keep an eye on this stock. Possible target price of around 9.00.