2.25.12 PSEi Dow & Oversold stocks with Low RSI

I am suppose to update my blog tomorrow(Sunday in Philippines) but since insomnia and homesickness attacks me, I want to take advantage of it and shift my mind into something fruitful.

DJIA – dow has been flirting with the 13k level. However, there’s something that bothers me…the volume! Are the traders already exhausted and doesn’t want to buy at this level or profit takers/holers are not yet satisfied of their gains and doesn’t want to sell? With the volume consolidation, I expect that there will be a big move coming on the week ahead. Whether it’s a breakout or start of a selldown. But technicals are bias on the downside with MACD & RSI showing divergences.

 

PSEi – For the last 2 days, PSEi was up during morning session then the selldown starts at 2:20PM. Holders since the start of the year still have profits even the 4800 support will break down.

On the contrary to the dow, PSEi’s volume has been trading above 10M/day last week or the 2nd highest weekly volume in 10years. And that was because of the buy up on Aboitizes stocks and sell down on Lopez stocks.

Is this a blow-off volume or will it bounced on its uptrend support? Take note that MACD & RSI are now diverging with the price.

 

LCB – support at 1.60. But if it breaks, 1.40 will be the next. Volume is in consolidation

 

AEV-AP-BPI-UBP-RCB story

The market assumes of the possible merger of BPI-UBP. AEV owns 43% of UBP. AEV also owns AP. Other traders are assuming that the merger is RCB-UBP.

 

Stocks at oversold level and RSI below 20

LR – is now only trading at an oversold level of RSI 18.2 but support is at 6

BEL – oversold. RSI at 15.91 only. 4 should hold

PCOR – RSI 17.41. Last two days were sold down with huge volume.

EDC – RSI 15.68. Breakdown from 2-year H&S pattern.

oh btw, just be careful when catching falling knives. wait for the knives to hit the floor before picking them up. A stock can stay at oversold level specially if the selling momentum is so strong.

Caveat

 

…now Im sleepy zzzzzzzz

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