StockWatch (June 2-6, 2008): PSEi

PSEi (Chart: Daily Resistance: 2900 Support: 2760)

There was not much action in the index last week. The previous gap down was covered on the third day of trading last week and thus invalidating the gap. Looking at the volume last week, there was significant volume on the last day of trading. This may suggest a continuation of the buying action by the first day of trading this week. In my opinion, I think the index is now slowly moving into consolidation phase and may trade any where between 2700 to 3000 for the succeeding weeks. Also take note that the “ghost month” is approaching and this may add to the consolidation phase. May be it’s time to hibernate…. as they say, “sell in May and go away...” It’s now June, have you sold yours? Hehehe :)