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Sunday, January 24, 2010

StockWatch (Jan 25-29, 2010): PSEi

PSEi (Chart: Daily Resistance: 3133 Support: 3016/2979)

The bears were in control of the market last week with the index moving lower. The index is now forming a probable double top formation with the neckline at 2979. So the support at 2979 is the level to watchout for. If the index proceeds to break the support with large value turnover, then expect the index to head towards 2800 level. As of current the index is being supported at 3016, which is also the 65 day MA. Any upward movement of the market may be a good oportunity to lessen your position. For next week, I’m expecting the index to continue moving downwards and will probably be supported when RSI reaches the oversold level at 30.

2 comments:

Francis Kho said...

seems you are correct with your outlook forecasts Mike....its beginning to take shape...do you think this is the best period to buy?

Mikes said...

Hi Francis,

This is a very risky time to buy. Any upward move may just be a bounce from the oversold level. I would rather keep my money and wait for sometime to see what would further happen.

But if your able to take the risk, you can profit a few bucks with the bounce from the low, but you should be quick in disposing your positions if things turn sour.