StockWatch (Jan 18-22, 2010): PSEi

PSEi (Chart: Daily Resistance: 3133 Support: 2979)

Last week the index stopped just a little above the previous high which means next week would be a crucial point whether the index would continue with its upward movement or not. I believe that there is still room for a few more upward movement based on the RSI, which has not yet reached the overbought level and also based on the MACD which is still opening upward. But then again, trading action last Friday closed lower and accompanied with a relatively large value turnover so trading next week might follow suit. So we have a mixed signal here, but all this means is that we should be more cautious next week. Should the index move south, watchout for support at 2979. Watchout also for a possible double top formation if the support at 2979 is broken.