After we have seen some gap ups late last week, some stocks may correct and close the gap before they will continue to move upward, that is, if we have a continuation of the bullish run. More and more stocks are now crossing above the 20-day SMA lines and some even reached 50% Fibonacci Retracement levels. Are we now at that starting line for the uptrend? Stocks we will monitor for possible correction that will give us opportunity to buy are MBT and ALI. ICT on the other hand may give us a good price entry once it hits the support line. COSCO who is knocking on its resistance line with a reward of filling the gap above is worth the risk. MWC has the gap above which is worthy of taking risk as well.
This week we will be picking on AGF for possible break from the resistance, MPI for possible bounce now that it reaches the lower end of the channel, LR as it silently move sideways, CPG since the bearish signal wasn’t confirmed and taking extra care on MEG and MBT for possible retrace.
This week may not be a good week as bearish sentiment is all around. Most of the stocks have a hard time breaking resistances like the 20-day SMA line. Most stock continue to trade with 20-day SMA lines below its 200-day SMA line. CPG and MCP as we see last week have a hard time breaking its resistance, LC continue to disappoint many traders and have a strong bearish bias which may send its price to 52-week low. SM on the other hand may have a spike but bulls need to do extra work for it to happen.
TA has the potential to bounce from the lower end to the upper end of its trading range. AC, SM, SECB and ALI are so far doing well in shifting gear and may have a continuation this week. Just watch out for their resistances either on Fibonacci Retracement level or the 20-day SMA line.
This week our focus is on SM, AGI and MPI for possible technical bounce while avoiding LC and LTG for now. See our technical analysis below.
This week all stocks picked for analysis have the possibility of going bullish in the short term. CPG is consolidating at the 20-day SMA line with Engulfing Pattern on weekly chart. ALI moving within the inclined channel. DAVIN at the lower end of the range and SECB is at its “calm after the storm”. Lastly SM which has been going down, might be ripe for a rebound.