There’s nothing interesting to see in TBGI if you consider its long term chart but there’s an opportunity to make money from this in the short term.

Let’s start with a bit of a recap on this stock. From April of this year, it started to climb from 2.6 low to a high of 3.45 then retraced to 3 which is near the 50% Fibonacci retracement, targeting the Fibonacci level at 150%. On June 9th it reached a high of 3.8; 12 points higher than the extension target at 3.65.

If you bought this stock at high, there might be still a chance for you to get out (If you’re lucky). Looking at the chart below, TBGI is currently stalking the 78.6% Fibonacci retracement and it seems to be trading within a channel pattern. The target is near the channel resistance or at 4 (127%).

I may call a buy on TBGI if it closes above 3.25 with good volume. When that happens, TBGI is not out of the woods yet. It might run into a potential reversal zone which is between 3.5 and 3.65. It’s a valid resistance because those who bought at high will sell at break even or better. If you bought below 3 or lower, just hold on to it until it closes below 3.1 or reached our target at 4.

Recommendation: Buy on breakout

B: 3.3+ (Must have good volume)
S: 3
T: 3.5/3.65/4

Let’s not ignore the GEMINI stocks: GEO, MIC and NI. When there’s basura there’s pera.

Ok, less talk, more charts.

GEO:

Retraced to 61.8%. if you’re holding this watch out for the potential reversal zone between 0.69 and 0.73.

B: TBD
S: 0.52
T: 0.93 (how about piso?)

MIC:

Like its brother GEO, it retraced to 61.8%. Potential reversal is between 3.1 and 3.25.

B: TBD
S: 2.48
T: 4.1

NI:

Again, similar to its brothers GEO and MIC, NI also bounced near 61.8%. Our extension target is going to be at 10.5.

B: TBD
S: 5.2
T: 10.5

GEMINI’s charts are all similar to each other so it makes sense to just choose one brother to buy. Choose wisely and good luck!

The PSEi did its best to give all participants a chance to enjoy the recent runup.  Based on last Friday’s performance, that was the time for most to get out.

If you notice, I’ve placed a horizontal line on the chart since weeks back.  This would serve as another resistance when the index rallies.  True enough, 2490 served as a resistance.  The problem was how the index did in its intraday chart.  It’s bad enough that the index would close near the low.  It’s worse that it closed lower than the open.  This indicates that many sold many of their holdings on that day which prompted the PSEi to go lower than the open.

This could be temporary as the 65-day moving average has now crossed above the 260MA, giving it some bullishness.  However, the 130MA still needs to rise above the 260MA to make our sentiment extremely bullish.

Based on how the MACD is doing, expect more correction to come.  This doesn’t mean that this will be a prolonged downturn.  However, it’s best to be always prepared.

Recommendation: Sell
Resistance: 2490

As we expected last week, the DJIA could not bring itself to higher levels.

The index has been flirting with the 200-day moving average but has not been able to break free from it.  By this coming week, it has to decide where it wants to go as it is now caught in between the 50MA & 200MA and the range is now quite narrow.

In our view, it is more likely that DJIA will correct once more, probably to where the 100MA is right now, which is 7971.  The MACD has also been showing us that the current momentum for the index is pointing downwards and this doesn’t look good for those who went long.  It may be time to unload some of those holdings first and just get back on it when things are better.

There’s a time to fight and a time to flee.  This is the time to flee, but only for the moment.

Recommendation: Sell
Support: 7971

As expected, the PSEi tested the primary resistance but corrected immediately from it.

It actually took its cue from the DJIA as it also corrected substantially in a short span of time.  What the local index needs to do now is to rally back to bring some relief to all investors and traders but at the same time, create a consolidation pattern.

The 65-day moving average is now racing to cross above the 260MA to make things more bullish but this is still not the ideal setup since the 130MA is still below the 260 MA.

The MACD has shown us that it’s time for people to take some profits as it has already reacted to the quick correction.

As many have said before, taking profits is not a sin.

Recommendation: Take profits
Resistance: 2500

DJIA acted like the little engine that could…or was it the little engine that couldn’t?

From what we have seen, the index backed off from its recent high of around 8700 and has been correcting since then.

The one thing noticeable was that it is the 200-day moving average that is preventing the DJIA to continue moving higher.  It has been able to make highs above the moving average but not break away from it.  What could possibly happen now is that the index will range trade between the 50 & 200MA as the two are closing in on each other.

We should expect some more correction as the MACD has already indicated to us a bearish divergence earlier.

What we would want to happen is for the DJIA to correct some more to the levels of 7500-8000 before it would go back to current levels to complete an inverted head & shoulders formation.  Should this become a reality, we could expect the index to return to 11,500 or thereabouts.

However, we should learn to lighten up on our holdings for the moment.

Recommendation: Take profits
Resistance: 8567

The DJIA has continued its sideways movement while staying above the 200-day moving average.

It may look resilient at first glance. However, I don’t trust the movement as the volume has been declining since May.

The other thing that makes this resiliency suspicious is that there’s a bearish divergence now in the MACD.

Since this is what is being presented to us, we have to be quick in taking profits while the market is still in this area as a fall seems to be in the offing.

Recommendation: Take profits
Support: 8642

Well, look what the cat dragged in.  While the PSEi was busy creating recent highs, it was making a lot of people happy.  What few noticed was that it was also testing the primary resistance line.

Right smack at 2598, the index met the irresistible force.  The question now is, how strong is the PSEi’s movement?  Can the momentum be sustained to break the downtrend?

Should this level be surpassed, the next area that the index may encounter some difficulty would be around 2800, as that was the high achieved back in August.

The MACD still continues to show that the PSEi’s momentum has not let up yet.  We could see the index try to achieve higher highs.

So who wants to go to paradise?  Even for a short while…

Recommendation: Hold
Resistance: 2598

The end of the bearish market is near.  At least that’s what our chart is telling us.

There have been numerous signs telling us beforehand that things were looking up.  The rise of the PSEi above the 3 moving averages is one.  The probable reversal pattern (rounding bottom) is another.

The past few days’ movement had the index close the gaps made back in October.  This is a good sign.  The support for the index now stands at around 2500, which is where the first gap started.

The index seems to be reaching for the primary resistance line to test it.  That now stands at around 2550.  Should that line be broken convincingly, the next resistance that the PSEi should watch out for is 2700-2750, the high made back in Aug.-Sep. 2008.  We did mention that we think that there’s a rounding bottom formed to reverse the downtrend.  Our projection based on this would bring the index back to 3250, more or less.

The momentum doesn’t seem to be fading either as seen in the MACD.  The fast line seems to be running away from the slow line and we could be nearing some overbought levels soon.  This could coincide with the PSEi testing the resistance line and we could see it back off after it hits that area.

I’ll give this week some more room for a rally but everything’s up in the air after that.

Recommendation: Hold
Support: 2500

The DJIA has really been resilient and that’s given a lot of people something to cheer about…even if it’s only temporary.

The first thing that we noticed is that the shorter term resistance has already been broken and that the green days have been more regular than the last few months.  Due to this, many have already started crowing that the bear market is over.  However, we wouldn’t go that far just yet.

What worries us is that the 200-day moving average is serving as a resistance at 8709.  Yes the index is currently slightly above that but it still hasn’t pulled away from it convincingly.  I said it’s not that convincing because the volume that went with the rise didn’t expand.  That’s why this movement is suspect.

Even the movement of the MACD is suspicious.  The DJIA rallied to higher levels yet the MACD seems to have a hard time keeping pace with the index.

I think it’s time to take some profits as the index seems to be readying itself for a fall.

Recommendation: Take profits