StockWatch (Sep 20-24, 2010): PSEi

PSEi (Chart: Daily Resistance: 4021 Support: 3955/3900)

The index moved sideways for last week instead of moving downwards to the previous resistance turned support at 3900. Again RSI is still very much overbought, expect the index to move sideways to downwards next week. Immediate support is at 3955 which is the trend line for the past 3 weeks, next support is at 3900, which is the previous high. The sideways to downward movement might continue until the RSI bounces from the 50 RSI. In either way you see it, next week would be a chance to lighten your load and buy near support levels or a chance to add more to your positions, both cases would be a good strategy as the Moving Averages are in the right order and it looks though that the lines are starting to open wide, especially the 65 day MA.