StockWatch (Feb 07-11, 2011): PSEi, ORE, FLI

PSEi (Chart: Daily Resistance: 3986/4100 Support: 3831/3727)

Just as I thought that the index would start to move upward, the index moved lower on the first trading day last week and created a gap down. The support-turned-resistance line connecting the troughs of Nov 30 and Jan 11, proved a strong resistance for the index. This somehow confirms that the breakdown last Jan 20 from the sideways channel (Nov-Jan) was not yet finished and it continued its downward movement last week. The sideways channel has a downward target of near 3760 which is not yet reached.

Another observation for the index though is the divergence that appeared with the trading action last week. A bullish divergence appeared, with the index moving lower connecting the lows of Jan 25 and Feb 01 and the RSI moving higher. This indicates an upcoming bullish activity, but there is no certainty as to when this will happen.

For next week, observe if the support holds, this is a major event to be observed for the reason that the current support is also the support line that is standing from Feb 2010. If the index goes below this support line, it would be a very bearish event and may start a long bearish segment similar to 2007-2009 bearish trend. However, if the support holds, we may see the index going towards 4052-4100 level.

ORE(Chart: Daily Resistance: 3.38 Support: 2.70)

The bounce from the RSI lows has happened for this stock. Amazingly, trading last Friday saw a white candle with a very large volume. No formation was broken so we could not say the target price. Upcoming resistance is near 3.38 which is the resistance of the downward channel. If the stock moves beyond the resistance line with large volume, this means we have a breakout of the channel. However, this is still far and unclear if the breakout will happen, so the immediate thing to do is lessen or sell near resistance.

FLI (Chart: Daily Resistance: 1.30/1.35 Support: 1.13)

FLI had a breakout from a downward channel with two white candle both with large volumes. The only problem is that if you were not able to ride this stock at its breakout price, there is not much room for profit as the target price is about 1.30.

StockWatch (Jan 31- Feb 04, 2011):PSEi, ORE

PSEi (Chart: Daily Resistance: 4026/4126 Support: 3880/3726)

The recent bus bomb blast incident made a mark on the index as seen on the day after the incident (Wed) with a black candle and large value turn over. This however, did not have a lasting effect, as on the following day, the index recouped losses with an equal amount of value turnover. This is a positive event for the index, however, it is still not a strong indication of bullishness as it was followed by a black candle again with considerable value turn over. So as you can see, the index is still mixed and there is still no strong indication of direction. For the coming week, the index may move upward towards resistance near 4126, but even with that movement, the index is still on a sideways movement with a slight downward skew. Observe if the index will be able to move beyond the resistance line, if it does, then hopefully this would be the start of continued upward movement for the index.

ORE (Chart: Daily Resistance: 3.50 Support: 2.92/2.66)

The last trading day of ORE saw a black candle with a very large volume. Logic dictates that this stock should be avoided. However, I’m inclined to think otherwise for the reason that the stock is now very much oversold with the RSI going below 30 level. If the stock continues to move downward, I believe that it would not be able to sustain the downward movement any longer and eventually bounce back up. The bounce can move towards 3.50 for a quick profit of around 10%

StockWatch (Nov 22-26, 2010): PSEi, ORE, ANI, ACR

PSEi (Chart: Daily Resistance: 4250/4300 Support: 4050)

Looks like the 65 day MA acted as support for the index, as it was able to bounce from the downward movement.

Trading last Friday created a white candle accompanied with large value turnover. We may be seeing an A-B-C corrective Elliott Wave in the making and as of current we may be in the start of the B wave. The B wave may reach up to 4250-4300 before continuing with the corrective C wave downward.

For next week, the upward movement may continue, but exercise caution as the downward corrective C wave may happen towards the end of next week.

ORE Chart: Weekly

ORE (Chart: Daily Resistance: 5.0 Support: 3.60)

ORE brokeout from the upward channel with a target price of 5.0, but aside from that breakout, there is also another breakout visible only from the weekly chart, which is a rounding bottom breakout with a target price of probably near 7.0

ANI (Chart: Daily Resistance: 15/18 Support: 12.70)

The bounce that I was expecting did not happen for this week. However, based on the trading last Friday, a white candle was formed with a very large volume, so this maybe the start of the bounce that I was expecting as the RSI has long been on the oversold level.

ANI has a possible double bottom formation, so be on the watch for a breakout near the resistance of 18.00

ACR (Chart: Daily Resistance: 1.62 Support: 1.50)

ACR brokeout from a rounding bottom last Thursday. The target price for the breakout is near 2.40

StockWatch (Mar 15-19, 2010): PSEi, ORE, BEL

PSEi (Chart: Daily Resistance: 3133 Support: 3017/2966/2787/2634)

The previous high at 3133 is still a stumbling block for the index to move further upward, with trading last week stopping just a few points short of reaching the previous high. Last trading day saw a large black candle so expect a possible continuation of the downward movement by this week. Succeeding levels of support are 3017 (65 day MA), 2966 (130 day MA), 2787 (previous low) and 2634 (260 day MA).

Watch out for another possible double top formation. Neckline of the possible double top is at 2787, the previous low. If this is broken, then we have a situation of the index moving towards 2500.

ORE (Chart: Daily Resistance: 2.02 Support: 1.60)

ORE might be one of those stocks that would defy general market sentiment. Even with the index poised to move further downward, ORE seems to be re-gaining its momentum for an upward movement, as evidenced with the large volume last Thursday. Also, with the RSI coming from the high of 87, the mid level of 50 usually acts as a support. If the stock does move upward this week, watch out for RSI 70 as resistance. Again, coming from a high RSI of 87, usually RSI would just move in between 50 to 70 level before moving further downward. Watch out also for a possible double top formation.

BEL (Chart: Daily Resistance: 1.88 Support: 1.64)

BEL had a large white candle spread last Friday, accompanied with larger than average volume. There is a possibility for the stock to still move further upward, probably up to 1.88, which is the previous high.

StockWatch (Feb 15-19, 2010): PSEi, ORE, MBT, ANI, CYBR, LIHC, MRC

PSEi (Chart: Daily Resistance: 3013/3133 Support: 2930/2797)

The index had a late rally, the downward movement extended for the first 2 days of trading last week and the expected rally only started on Wed.

For the coming week, I believe that the rally would still extend based on the large value turn-over last Friday. Upcoming resistance for the index is at 3013 which is the 65 day MA. I believe that this rally is not yet a time to go long. Though the MACD is starting to position itself for the cross above the signal line, the MACD is still below the centerline, which means we could buy but not yet for the purpose of going long on the stock. I am expecting that the 65 day MA and the previous high would prove to be a strong resistance and it would just push the index to move sideways, before moving south again.

General note: Beware of stocks that are moving upward with not much volume. These are potential bull traps.

ORE (Chart: Daily Resistance: 2.3 Support: 1.52)

On the onset of the rally, ORE has broken out of a flag formation. Volume last Friday was very large so expect for the rally to continue next week. Target price for this stock is at 2.3

MBT (Chart: Daily Resistance: 43.50 Support: 39)

MBT also has broken out of a downward channel. Target price for the stock is at 43.50, but has the potential to reach 45 which is also the 65 day MA

ANI (Chart: Daily Resistance: 25 Support: 16)

ANI does not have any area pattern where it has broken out from, but I believe that this has potential of moving towards 25. Volume last Friday was relatively the same as the volume last Tuesday, so the bulls are slowly moving back. It is possible that we might be seeing a V formation here if volume on Monday would be the same as volume last Friday.

CYBR(Chart: Daily Resistance: 0.75/0.87 Support: 0.70)

CYBR’s daily chart is very promising. Last January the stock formed a symmetrical triangle which broke out on the last week of January, with the target price nearly reached. This time around, there is another possible symmetrical triangle forming, with resistance at 0.75. This has a potential target price of 0.96.

But zooming out further, we are probably witnessing the formation of the right side/wall of a rounding bottom area pattern. The left side of this formation started last July of 2009 and it seems we are near to the completion of the right side. This has a potential upside of 1.25. So be on the lookout for the breakout of this stock.

LIHC (Chart: Daily Resistance: 8/8.50 Support: 5.00)

LIHC does not have any area pattern where it broke out from, but trading last Friday had a very large volume that it is hard not to notice this stock. This stock has the potential of moving towards 8.50 which is the level where the 65 day MA and 130 day MA are converging. But before it reaches that level, it has to break above the 260 day MA at 8.00.

MRC (Chart: Daily Resistance: 1.06 Support: 0.77)

MRC has the potential of forming into another flag formation, with trading last week forming another possible pole for the flag formation. But you’d have to be cautious in buying this stock because it is currently very much overbought. This may at anytime give in to selling pressure.