21/10/2007

Stock candidates' performance

Now let's look how did our picks perform last week.

	BBIDEVNFI has broken above the symmetrical triangle pattern, after posting a sharp V-bottom and it's currently making a slight pullback, probably to establish support on the rising moving averages. The pullback is developing on diminishing volume, which implies little selling pressure, so I think this stock is ready to retest 2,50 level.
	BUDOPOL is still consolidating and testing this resistance near 7,00. Making a higher lows on mediocre trading activity suggests accumulation phase, which is about to drive the price eventually above this resistance level. The nearest target after such breakout is probably near 8,00 (prior resistance/support).
	ECARD retested its nearest resistance and the pulled back to form another higher low above the rising 10-day moving average. So far the average has proved to be a strong support in this stock, which is a sign of strength, considering that whe whole triangle pattern is being developed on lower volume than the breakout itself. Staying in such bullish position will lead to a test of still declining 100-day moving average.
	FASING is behaving exactly as I have written. Low volume pullback to 100-day moving average proved to be a sign of strength, which eventually drove the price to test its nearest resistance near 36,30. Now if we want to see a retest of the all-time highs, this situation must repeat. So far everything is indicating that this is going to occur, if the price manages to stay above its previous resistance and the averages.
	HOOP has broken above its all-time high resistance and so far nothing is going to stop it from leaping higher. The only concern about this one is, that it is kind of a low liquid stock, meaning "no large betsize strategy". The conservative target is about to be reached - it's a matter of 2 points in this one.
	HYGIENIKA fell back to retest the moving averages, so it has violated the pennant pattern, which was formed just under the nearest resistance. Breaking below these averages will lead to a retest of the recent lows. But now, let's focus on price making another higher low on diminishing volume, so the bulls still have a chance to drive it above 7,00 if this low remains intact.
	INGBSK still keeps to get narrower in this symmetrical triangle pattern, suggesting continuation of prior upward move. Now that it has reached such point of indecision, my bet is that breaking either way from this triangle will define further direction of this stock.
	MMPPL looks exactly the same as above, though it's in a different pattern (also suggesting continuation). Breaking either way from the rectangle will drive the price to retest its nearest lows or all-time highs.
	PGNIG has stayed above its prior resistance, which I was counting on in my previous analysis. Moreover support is now lined up with rising 10-day moving average, so it's a stronger confirmation of strength in this one. Now, the key is either to remain at current position or at worst decline to 20-day MA and then continue rising from there, if this stock is to maintain its uptrend.
	PROKOM is very slow, but it's managed to stay above its recent high (indicated on the chart by figure 2) of this 1-2-3 bottom reversal pattern. As long as it stays above the averages, we can consider this one as a candidate for further advance.
	STORMM is still consolidating just under 14,00, so definitely remains on our list. Breaking above this resistance will drive the price to retest 15,50 and then the all-time highs.
	TRASINTUR also remained under its short term resistance, so no reason to get involved yet.
	WILBO is the one I am concerned about. On thursday it posted a huge shooting star, though on lower than usual volume, so it is definitely a false breakout above 100-day moving average. Then on friday it posted a hanging man, which also implies that the price has stalled. As long as it stays above the averages, there is still a chance to reject this double bull trap.

Now, everything depends on the result of today's elections. If opposition wins, there is a chance, that monday session will not be influenced so much by America's negative close.