Will Support Hold for PeopleSupport?

Exactly a year since PSPT had a major gap down in its stock price, today's action shows PSPT gaping down again. From it's previous day's close of $11.40, it opened today at $8.11, further dropping to a low of $6.77 before closing at $8.20. A close look at the chart though shows that today's closing sits along PSPT's support line. However, that having been pierced during the day with huge volume, the support line is now in suspect and could turn out to be the new resistance, a role reversal. Given that PSPT is considered as one of the leading BPO companies operating in the Philippines, will other BPO stocks like ETEL, PAX, or even IP be affected by this recent price action?

By the way, its stock price now is less than 50% of what IP was offering just a couple of month's ago. I wonder how shareholders are feeling about this.

PSPT Revisited

A look at PSPT's chart shows that it's target price has been achieved. Five trading days after breaking down from its ascending triangle pattern, PSPT went to as low as $10.76 before closing at $11.60. Its MACD in negative territory and is now pointing downwards. It is now trading below all moving averges. For the last 2 days however, it's been holding on to the $11.60 level. Let's see if this support will hold, otherwise, next support is around the $10.25 level. Let's see how PSPT develops into this coming week.

No Support for PeopleSupport?

Of what was supposed to be a bullish ascending triangle formation ended up in a breakdown situation for PeopleSupport. From its previous close of $14.03, it immediately gapped down to $13.75 before closing to $12.51. The bears have immediately taken over PSPT. I see this heading down to around $11.25.

After posting this chart, I learned that PSPT for the 2nd time rejected IPVG's revised takeover offer of $17 per share. Looks like the street failed to support it this time.

For IPVG, no effect whatsoever as it stays flat at P4.85 today.

A Look Back At PSPT

To all my friends at PSPT who may be planning of cashing their options, here's my personal/techinical analysis of PSPT's stock performance.

As you can see from the chart, the stock is moving in an uptrend channel. It's MACD is positive which is a bullish signal. It's current price above all moving averages; another bullish signal. Last Jan. 11, it opened at its low of $13.37 and hit a day high of $15.25 forming a pole. It subsequently consolidated in a flag pattern (likewise a bullish signal). A break above $14.38 could propel this stock to around $16 which is the resistance.

Well, a break above that $16 could take this stock further to new highs.

Looks like all the bullish signals for PSPT. So friends, will you cash in or hold? You have your options.