StockWatch ( Dec 22-24, 2008): PSEi

PSEi ( Chart: Daily Resistance: 1960 Support: 1880)

Nothing happened last week for the index. It just kept moving sideways. With the shortened week due to the holidays, it looks like index will leave 2008 without anything happening. We only have 3 trading days for this week and definitely a lot may be on holiday mode already so volume would probably be low for the 3 trading days.

The symmetrical triangle is still intact, however, the price action is very near the apex of the symmetrical triangle, that if nothing still happened for this week, the symmetrical triangle we are seeing would become invalid.

My hopes are down for any further exciting actions in the market, but if its any consolation, I’d rather see the index go sideways than down.

Merry Christmas and Happy New Year to ALL! Hope you had a very profitable year or if not, a very educationally filled year of trading.


General Note: A lot of other stock’s MACD are near the centerline as well as the RSI’s also near the 50 line. In bearish markets, the center line of the MACD and 50 level of the RSI sometimes acts as a resistance level, so expect either further consolidation or sideways movement or further downward movement. At this point, if there are any upward movements beyond the centerline of the MACD, it has to be accompanied with volume otherwise it will just fail to move further upward and just dip downwards below the centerline.