In Retrospect: IPVG, SM, DGTL

IPVG

Support at 6.40 held only up to Wednesday’s trading and went down to 6.30. But on the last trading day, price went back up. As of current, the ascending triangle is still intact. We still have the coming week to see if the dip to 6.30 was just temporary or if resistance at 7.10 will be broken this week. Recommendation: Hold. If price proceeds to move up, watch the volume at 7.10. Breakout volume should be more than 10M shares traded.

SM

SM broke down from the support line and went as low as 347.50, below the 65 day MA. Recommendation: Buy only on breakout. Although the ascending triangle is still intact, there is still a possibility that price would just move in a range between 347 and 375.

DGTL

DGTL broke out without volume. Price action did not even reach 1.90 as the 65 day MA already blocked its move up. Recommendation: Sell. There is a higher possibility of price to still move downwards.

StockWatch (April 16-20, 2007): IPVG, SM, DGTL

IPVG(Chart: Daily Resistance: 7.10 Support: 6.40)

IPVG seems to be forming an ascending triangle with resistance at 7.10. Target price for this ascending triangle is 9.10. Recommendation: Watch out if price continues to move down. Buy if the support at 6.40 holds.

SM (Chart: Daily Resistance: 375 Support: 360)

SM is forming an ascending triangle with TP at 425. Recommendation: Buy only on breakout at 380, cut loss at 370.

DGTL (Chart: Daily Resistance: 1.76 Support: 1.70)

DGTL is forming an ascending triangle with resistance at 1.76. Target price is 1.96. If it breaks out, it needs to take out the 65 day MA and the gap down at 1.90. Recommendation: Buy on breakout. Watch out for resistance at 1.90 if it breaks out without volume.

In Retrospect: ELI, ABA

ELI

ELI just touched the resistance at 0.88 and fell back retracing 30% of the move. Price will still move side to downwards this coming week. Target is not yet reached. Currently 0.83 is providing support.

ABA

After a successful breakout, price went back below the support level of 0.016. Currently 0.013 is providing support.

StockWatch (April 10 – 13, 2007) ELI, ABA

ELI (Chart: Daily Resistance: 0.88 Support: 0.79)

ELI might have broken out of a symmetrical triangle. Target price is 0.93. The triangle is a little bit odd, but I’m banking on the high volume and the MACD crossover for it to break the resistance at 0.88 and hopefully close the gap. Recommendation: Buy near support of 0.79 -0.83. Cut loss at 0.78. Watch out for resistance at 0.88.

ABA (Chart: Daily Resistance: 0.0174 Support: 0.016/0.015)

ABA seem to have broken out of a rounding bottom. Target price is 0.025. Recommendation: Buy. Watch out though if the price movement consolidates to form a cup and handle area pattern

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.