SotckWatch (Aug 1-5, 2011) PSEi, ISM

PSEi (Chart: Daily Resistance: 4515/4580 Support: 4450)

The index moved sideways last week and regaining losses on the last trading day.

As of current there is no significant area formation except for a possible rising wedge and this formation seems to be supported by the RSI and the MACD as of the moment. The RSI is near overbought level while the MACD has crossed below the signal line.

One good thing to point out though is that value turnover on the days when black candles are formed are significantly lesser than value turnover for days when a white candle is formed. This may mean that the bears still do not have the full strength to pull the index downward. But on the other hand, value turnover on the white candle days are noticeably lower than those from the previous 2 weeks which may indicate weakness in the upward movement.

For next week expect a short upward movement or sideways movement for the index. A resistance line is now established at 4580 ( connecting the previous peaks). There is lesser possibility for the index to breach that resistance line if the value turnover continues to be lower than what we had last week.

ISM (Chart: Daily Resistance: 5.19 Support: 4.50/4.00)

ISM went very bullish and created large spreads and gaps on the last 2 trading days for last week. On both days, the white candles were accompanied by very large volume.

This stock is definitely bullish, however, on the last trading day, the stock was not able to create a full body for the white candle, which means weakness on its upward movement.

For those going long on this stock, this definitely has the potential to go up to 8.00 level. But for those whose objective is short term, it would be best to sell for now and buy back probably near 4.00.

StockWatch (Mar 08-12, 2010): PSEi, ISM

PSEi (Chart: Daily Resistance: 3133 Support: 3016/2954)

The index was amazingly able to move beyond the 65 day MA, but seems to be having problems breaking the previous high at 3133. Based on the Stochastic Momentum Index, we might be heading downwards to sideways for next week. Next levels of support are 3016 (65 day MA), and 2954 (130 day MA).

ISM (Chart: Daily Resistance: 0.6 Support 0.5)

ISM seems to be moving positively despite the possible weakening of the index. The last trading day for ISM saw a large spike in volume and a white candle. The MACD seems to be confirming a positive movement for this stock, we just don’t have an idea up to where this will take the price. Upcoming resistance is at 0.6 which is the 65 day MA, while previous high is at 0.0775.

StockWatch (Jul 14-18, 2008) : PSEi, ISM, LCB, PA, BSC

PSEi (Chart: Daily Resistance: 2500/2650 Support: 2330/2290)

The index had a good rally that lasted 3 days before succumbing to selling activities. There are a couple of things worth noting on the action last week, first is the closing of the gap down that happened last Jul 3 (Gap 2) on the first day of trading last week. It indicated strength in the upward move as it was able to go past the gap down area. Second is the nearly closing of yet another gap down on June 27 (Gap 1), on the third day of trading. It would have been good indication, if on the fourth day of trading, that the index totally closed the gap and created a new high. However, the index was sold down for that day, leaving the gap unclosed, which indicates weakness in the index. Last Friday saw the index move further down nearly closing the gap created in the rally (Gap 3). And looking from the RSI, it is near the 50 line which indicates resistance. An RSI of 50 is already considered as a resistance if the trend of the index is bearish. With that it is possible that on the first trading day next week, we may see the gap up be totally closed. What I can see as a good indication in the chart is that the RSI has now created a new higher high. In a severely bearish market, an RSI of 30 and 50 are considered areas of resistance. In previous instances, RSI was able to move beyond 30 RSI but is unable to create a new high. For last week’s case, RSI was able to move above 30 and create a new high. This is good indication, because it means RSI 30 has been eliminated as an area of resistance and can now possibly act as an area of support. So for the coming week, expect that the index would still continue to move further down, but expect that when the RSI reaches near 30, there might be support at that price level (possibly at 2330). Trading strategy is still to keep liquid. Any small amount of profit should be protected from a bearish market. Still no signs of reversal, but hopefully if the support at 2330/2290 holds, then we might see a reprieve from the bearish market and move to a consolidation phase.

ISM (Chart: Daily Resistance: 0.039-0.040 Support: 0.033/0.029)

ISM had a good run last week, from the low of 0.026, the stock sky rocketed to 0.039, a 50% increase in price. It is also worth noting that the price also broke above 3 moving averages, and the break was accompanied by large volume, a sign that the sky rocketing action has credibility and is not just some result of speculations. Aside from breaking the 3 moving averages, the stock also broke a resistance line from Jun 2007, which is part of what seems like a falling wedge formation, with a target price of nearly 0.06. However, the stock is very much overbought as the RSI is now above 80. Aside from being overbought, the stock is also facing resistance at around 0.040, which is a support line turned resistance from 2003. For now if you have this stock, sell for the mean time. If you plan to get into this stock, a good entry would be at 0.035 and 0.33. Watch out if the stock falls further below 0.33, there might be signs of weakness of such case happens.

LCB (Chart: Daily Resistance: 0.26/0.34 Support: 0.22)

LCB is showing some activity. Last Friday’s trading saw the stock moving higher with above average volume. It may or may not mean something, but it is worth watching as support at 0.22 held, which is a previous low. Current resistance is at 0.26, which is the start of the previous gap down.

PA (Chart: Daily Resistance: 0.13 Support: 0.07)

PA had a promising run up to Thursday, but things went the other way around come Friday. Large volume accompanied the break out from a falling wedge, but a larger volume accompanied the sell down last Friday. This definitely is a sign of weakness, so it is better to avoid this stock.

BSC (Chart: Daily Resistance: 0.23 Support: 0.16)

There seems to be some activity in BSC as the stock traded with large volume last Friday. Thing to watch out for this stock is its resistance line at 0.23, which if broken may give the possibility of it going to as high as 0.40.

In Retrospect: PLTL, ISM

PLTL

PLTL broke resistance at 7.10 but without volume. However it was able to sustain its upward move toward 7.30 and eventually also broke out from 7.30 with considerable volume. The last 3 trading days were characterized by above average volume. RSI is now oversold and there is a possibility that 7.30 support (previously resistance) will be re-tested.

ISM

I’m unsure of how ISM will fair in terms of the flag/pennant formation. Usually in the local market flag/pennant formation has a duration of 3 days for it to form. For ISM it has already taken 5 days for the formation and still no breakout. Watch out for support at 0.042, price going below that would be a signal to sell.

StockWatch (Oct 01-10, 2007): PSEi, PLTL, ISM

PSEi (Chart: Daily Resistance: 3600-3700 Support: 3520)

We now have further confirmation of the upward move. The 65 day MA and 61.8% Fib retracement were easily taken out by a gap up with considerable volume. As of current the index is now overbought, expect side to downward movement in the index for the coming days. MACD may test the center line as support, if it is able to stay above the centerline despite the downward move this is another sign of strength for our index. We now have only 2 remaining resistance along the way to establishing a new high: the gap down and previous high formed last July. Let’s get ready to rumble!

PLTL (Chart: Daily Resistance: 7.10/7.30 Support: 6.90)

PLTL is displaying the characteristics of an ascending triangle. Two resistance points can be noted, first is at 7.10, second at 7.30. If it breaks out of 7.10, target price is around 8.70, if it breaks out of 7.30 target price is 8.90. A good breakout volume would be above 15M shares traded

ISM (Chart: Daily Resistance: 0.055 Support: 0.046)

ISM is a candidate for a flag/pennant formation. Watch out for the pennant/flag for the coming week. Conservative target price of atleast 0.07 based on the current pole.


General note: There are a lot of other stocks exhibiting ascending triangle characteristics (e.g SM, SMPH, SMDC). If the coming week will be a down to sideward move, this might be a good chance to get in those stocks, however do observe your cutloss levels if incase price moves further down.

In Retrospect : ISM, TUNA

ISM

The stock opened high and closed low on the first day of trading for last week. It reached to a high of 0.075 and a low of 0.065. The succeeding days were followed by a sell off with minimal volume. Based on the previous week’s volume a lot are still holding on to the stock even if the price moved back in the triangle. Probably, most have a low average price on this stock or may be a lot are still hopeful for this stock. Who knows what the reason is, but as of current there is still a high probably of this stock trying to go beyond 0.0675. But before doing that, the price may experience resistance along the way up, as those who have jittery hands might sell on the first sign of strength to stay liquid in the current volatile market. Recommendation: Hold. If price still goes below the 65 day moving average, sell. If the price is unable to go beyond 0.0675 and continues to consolidate within the week, sell. The momentum might fizzle out if it continues to consolidate.


TUNA

I never thought this stock could go below 1.92, but in this volatile situation, any thing is possible. Stock went as low as 1.88 and the MACD dived back and went below zero. So much for my expectation of momentum picking up when MACD crosses above zero line.

StockWatch (Mar 05-09, 2007): ISM, TUNA

ISM (Chart: Daily Resistance: 0.070/0.0775 Support: 0.0675)

This stock may have broken out of an ascending triangle. But I could not confirm if it is a valid ascending triangle as previous volume has been dwarfed by the increase of volume. If this is a valid break out from an ascending triangle, the target price is 0.085. Recommendation: Buy. Watch out if the price pulls back in the triangle.

TUNA (Chart: Daily Resistance: 2.28 /2.36 Support: 2.06/2.04)

TUNA doesn’t have an area pattern, but what could be promising for this stock is the MACD’s recent break above the zero line. Signal for going long. This is a stock to watchout for.



General Analysis:
A lot of stock has started to display short term bearishness in their MACD. For the following days watch out for further consolidation. This would be a chance to spot new area patterns.