StockWatch (Oct 15-19, 2012): PSEi, PCOR

 PSEi (Chart: Daily Resistance: 5480/5510     Support: 5350)

Looks like upward channel is further confirmed with last week’s trading action when the index went back inside the existing channel and found support near the support line of the channel.

With the white candle appearing on the last trading day, it is highly probable that the index would bounce from the support line and try to reach the resistance line of the channel near 5510.   The stochastic momentum index seems to support this idea as it positions itself for a cross above its %D moving average or the slow stochastic.  The RSI also supports this idea as it now starts to move upward again.

With the channel further confirmed, a range trading strategy is recommended.

 PCOR Weekly Chart

PCOR (Chart: Daily   Resistance: 11.10 Support: 10.80/10.48)

PCOR is one stock that seems to be turning around and is slowly starting a positive upward trend.

Looking at the weekly chart, the past two weeks were witnesses to the sudden increase in trading volume for this stock, the latest positive trading action since the start of the year.  The weekly MACD is also hinting on the possible positive upward movement for this stock as it nears the center line.

However, on the daily chart, the indicators are starting to point to a negative event as  all indicators are now moving downward.

So to sum up,  the general view for this stock is positive as shown by the weekly chart, but the daily chart, as of the moment is negative.  So for those whose objective is long term hold for this stock, the possible negative/downward movement next week would be good for entering this stock.   For those looking for a short term hold for this stock, you might need to sell for now and buy back near the support line at 10.48.

StockWatch (Oct 8-12, 2012): PSEi, GMA7

 PSEi (Chart: Daily Resistance: 5480   Support: 5350)

The index reached a new all time high last week, and none of the negative divergences were seen in the different indicators.  This is a good sign for the index, however, there is only one stumbling block to the index’s ascent, and that is the existing resistance line connecting the lows of June and July 2012.

The index was able to move above that resistance line last week, but it was unable to maintain its foothold and closed below the resistance line.

The standing upward channel formation still holds and it might be that the index would be moving within that channel, between 5480 and 5350.

Except for the RSI, which is now on overbought level, all the other indicators does not show any negative sign for the index.  So I guess this might be the start of the index’s bullish movement, all that is left blocking is the resistance line.

GMA7 (Chart: Daily Resistance: 9.30/8.99 Support: 8.20/8.00)

The chart clearly shows the effects of the news release of the failed talks regarding the sale GMA.  

Technically, the stock broke down from a downward channel and its target price has been reached last Thursday.  This stock is definitely something to avoid, but for the fast draw traders out there, this is an opportunity to take advantage of the possible bounce that could happen for this stock, considering that the RSI is now at 13, far way below the oversold level of 30.

We could see the stock retracing back to near 8.99 before being stopped by the resistance line of the channel where it broke down from.

StockWatch (Oct 01-05, 2012): PSEi

PSEi (Chart: Daily  Resistance: 5400/5420 Support: 5310)

The index is currently being supported by the 10 day MA, preventing it from moving further down.

What seems to be forming now is an upward channel instead of a rising wedge because of the sideways movement that the index generated last week.

We see that the index is now just a few points away from reaching the index’s all time high near 5403 and this would definitely be a serious resistance for the index.

Right now the R-squared (blue line) is starting to dip, which means the index is losing strength, but the Stochastic Momentum index, RSI and MACD are all climbing up, so be on the lookout for a possible divergence, where the index moves higher than the  recent high, but other indicators are unable to do the same.

StockWatch (Sep 24-28, 2012): PSEi

PSEi (Chart: Daily      Resistance: 5370   Support: 5400)

The existing resistance line proved to be a strong hindrance to the upward movement of the index.  The index was only able to go as high as 5367 before buckling down to close at 5350.  

The bears have shown their strength through the resistance line, it is now a wait and see if the bulls will also be able to show their strength if the index is supported from falling further by either the 10 or 50 day MA.   If the bulls are able to do so, then we may be seeing our index trade in an upward biased trading range between the resistance line and 10 day MA.

If the bulls and bears battle it out, then we may have a possible upward channel or worst case a rising wedge, which is a bearish formation.

For now I would suggest to hold off any plans of buying until probably the index is able to move above the resistance line and the MACD is able to hold its position above the zero line.

It is not yet time to unload, but if the rising wedge does materialize, then start thinking of unloading on the way up.

StockWatch (Sep 17-21, 2012): PSEi

PSEi (Chart: Daily      Resistance: 5360         Support: 5230)

The index was able to gain some positive movement on the last trading day last week, but stopped short just below the support-turned-resistance line.

All indicators are confirming the recent positive movement.  We now only have the support-turned-resistance line to conquer and it is a wait and see moment if the index has the strength to sustain the recent upward movement and cross above that resistance line.

If the index is able to move above the resistance line, this can be a signal to get in the market once again.

Do watch out for the RSI, as it nears the overbought level.  If the index has the strength, RSI @70 would not even matter, but if otherwise, that RSI level can be a resistance for the index.