StockWatch (Jul 13-17, 2009): PSEi

PSEi (Chart: Daily Resistance: 2508/2570-2560 Support: 2410/2350)

I wasn’t able to closely follow the local market for the past 2 weeks because my mother-in-law died and I had to set aside blogging about the market for a couple of days. Looks like I missed out some action in the market with the index consistenly moving up last week. The index is now approaching the previous high of 2508 and it is a wait and see if by next week the index is able to move past that previous high. After that resistance, next resistance is between the level of 2560-2570, this is the resistance line formed since Oct of 2007.

The market is consolidating currently and there is still more room in the RSI before it is considered as overbought so there is still a stronger possibility for the index to move further upward. However having those resistance levels near the current index level is a little bit disturbing. For the coming week exercise caution in buying. If trading for this week has low turn over or volume for the stocks, I believe that the index won’t be able to move above the long standing resistance line from Oct 2007 (2560-2570).