StockWatch (Apr 21-25, 2008): PSEi

PSEi (Chart: Daily Resistance: 3050 Support: 2900/2880)

With last week’s price action, it looks like the index is trying to establish an upward trend. As of current, the index has established a higher low, which is a good sign that price aren’t likely to head south again for the mean time. Other good things to note: A.) the MACD is still above the signal line in spite of the successive downward action in the index. B.) Both RSI and MACD are oscillating near the 50 level and center line respectively. Things to watch out: A.) MACD crossing the centerline might trigger some buying action in the market. B.) Upcoming resistance at 3000 which is the resistance line forming from Dec 2007. If price is able to move above this resistance, this will be another victory for the bulls and might help propel the index towards the next resistance at 3200. In general, the market is now out of the bearish dive and is consolidating. Trading strategy would either be to still stay liquid or trade the range. For the risk averse, probably the safe time to get in and start buying would be when the index crosses the center line.