StockWatch (Feb 02-06, 2009): PSEi

PSEi (Chart: Daily Resistance: 1890 Support: 1818/1763/1684)

The rally towards the 65 day MA was short lived and was not accompanied with volume so the attempt at moving past the 65 day MA was just deflected again. This time around a new lower low and a gap was formed, accompanied with relatively large volume compared against other trading days of the week. This looks like further confirmation of the breakdown from the symmetrical triangle last Jan 21.

For the coming week expect further selling action. Next support levels are 1763 and 1684 which are previous lows. A break below 1684 signals the continuation of the downward movement for the index since 2008.