StockWatch (Dec 07-11, 2009): PSEi

PSEi (Chart: Daily Resistance: 3146 Support: 3036)

Contrary to what I was expecting with the rising wedge formation, the index continued to move higher at the first day of trading last week. The upward movement lasted only for 2 days and receded on the last 2 days of trading. For the coming week, expect the index to move further downwards. Again watchout for the RSI reaching the 50 level, as this may provide support from the downward movement. MACD tells us to sell for the mean time as the MACD line moves below the signal line.