StockWatch (Jul 05-09, 2010): PSEi

PSEi (Chart: Daily Resistance: 3377 Support: 3258/3220/3141)

There was no follow through with the white candle formation that happened on Friday June 25, so the index had a weak approach to the long standing resistance line from June of 2008. The resistance line was still able to hold its ground making it the fifth time that the index has unsuccessfully tried to break above that resistance line.

For the coming week observe whether the 65 day MA, 130 day MA and the support line between the 2 mentioned MA’s will be able to hold its ground as well. If the 65 day MA is able to hold its ground, then the battle between the bulls and the bears is still very much in play and ranging movement for the index would continue.