StockWatch (Aug 23-27, 2010): PSEi, MEG

PSEi (Chart: Daily Resistance: 3597 Support: 3438)

The index had a remarkable rally last week with large value turnover. It did not only bounce from support, but was also able to create a new high. RSI is again on the overbought level, so for the coming week, expect a possible downward movement by the middle of the week.


MEG- Monthly

MEG (Chart: Daily Resistance: 2.28 Support: 1.76)

MEG broke out of a very big cup and handle formation. Target price is near 3.0. The breakout volume on the daily chart is not that convincing because it did not surpass previous week’s large volume. However, looking at the monthly chart, the breakout is a little more convincing as the breakout volume was larger than the previous months. This somehow indicates that the target price might not be achieved in a couple of week’s time, but rather probably more than 4 months before target is reached

StockWatch (Aug 16-20, 2010): PSEi, GLO

PSEi (Chart: Daily Resistance: 3536 Support: 3431)

The index moved sideways for a moment and then moved downwards for the rest of the week last week as a reaction to the overbought condition. For the coming week, observe if the support line at 3431 will hold. Also do observe the RSI as it is approaching near the level of 50, this sometimes acts as a support level when coming from a high of RSI 70. Expect the index to move further downward next week and probably move sideways when it reaches the support line at 3431.

GLO Weekly Chart

GLO (Chart: Daily Resistance: 820 Support: 750/700)

GLO is not in a very good position currently as the stock just broke down from a channel with a downward target price of about 750. To add to the negative events, the break down also formed a gap downward. The RSI of the stock on the other hand tells of an oversold stock and a possible bounce may happen anytime next week.

A thing to observe is if the stock would be able to go lower than 700. The 700 level is a support line or neck line of a possible large head and shoulder formation (See weekly chart). If this stock breaks down from the support, then this definitely would be a very long downward movement (however, I think this is highly unlikely, because the downward target price would bring the stock to a negative value)

StockWatch (Aug 9-13, 2010): PSEi, MEG

PSEi (Chart: Daily Resistance: 3533 Support: 3424)

The index had a short rally last week, breaking a 2 week sideways movement. This is a positive action for the index as it showed strength and was able to move further away from the support line. The only problem is that with the recent rally, the index has reached overbought level. So for the coming week, exercise caution as selling action might take center stage.


MEG-Weekly

MEG (Chart :Daily Resistance: 1.77 Support: 1.50)

MEG had a rally breaking just above the resistance line of 1.74. This is short of a breakout from a cup and handle formation (see weekly chart) or an ascending triangle with a target price of 3.00. The only problem however is that the recent rally has created 2 gaps and the stock has reached overbought level. Another gap formed for this week might not be sustained and a return move towards the support may happen. Watch out for the resistance at 1.77 if this is breached with large volume, then the stock would be heading towards its target at 3.00

StockWatch (Aug 2-6, 2010): PSEi

PSEi (Chart: Daily Resistance: 3485 Support: 3417)

The index moved sideways last week. There is not much action happening with the index and this may continue to move sideways next week. One good thing about this is that even if it is moving sideways, the index is not going below the support line. If this is further supported on the coming weeks, this would be a good sign of possible further upward movement.

StockWatch (Jul 26-30, 2010): PSEi, JGS, PNB, RCB

PSEi (Chart :Daily Resistance: 3485 Support: 3402)

The resistance line that was broken last week provided support for the index and enabled it to move sideways. For the coming week, I am more inclined to say that the index might not be able to move upward for the mean time as trading last Friday moved the index higher but closed lower and formed a black candle accompanied by high value turnover. Expect further sideways movement for this coming week. The resistance line turned support is something to observe for the coming week. If it is able to provide support for the index, this might be a sign that the index will move higher and it is just consolidating above the support line.



JGS (Chart: Daily Resistance: 17.50 Support: 16.25)

JGS is still a viable option to rake in some money. JGS made a return move towards support at 16.25 and never went below the support line. While on the return move to support, the volume was not large enough to cause problems, instead it just gave opportunity to accumulate more JGS at a lower price. Trading last Friday created a white candle accompanied by large volume and is definitely a very visible sign that the index is now on its way up towards the target price of 19.


RCB (Chart: Daily Resistance: 25 Support: 21)

The stock brokeout from an ascending triangle with large volume. Target price is at 25, but the recent breakout diminished the returns. Watch out for a return move towards support, if this happens and support holds, then this is an opportunity to buy more of the stock

PNB (Chart: Daily Resistance: 44.50 Support: 30.50)

The stock broke-out from a symmetrical triangle last July 13, but the target price of 40 has been reached. Trading last Friday still propelled the stock further above the target price accompanied with large volume. The volume that accompanied that upward movement last Friday tempts one to buy more, however, looking at the RSI, the stock is very much over bought. Anytime soon, the stock will start to move lower, so exercise caution if you plan to buy this stock.