StockWatch (Jun 22-26, 2009): PSEi

PSEi (Chart: Daily Resistance: 2620 Support: 2350/2290)

Looks like this is the long awaited correction to the upward movement of the index and it means were still within the long standing downward channel generated from Sept 2007.

Possible support are at levels 2350, which was the previous resistance that was broken and 2290, which is the 38.2% fibonnacci retracement level. There is a possibility for an upward movement next week considering that the RSI is now on the 50 level, usually RSI at 50 acts as support when the RSI is coming from the high of 80. Still for next week, it would be best to stay on the sidelines just to be sure and wait for any signs of reversals.