PSEi (Chart: Daily Resistance: 3950/3920 Support: 3690/3720/3820)
The confirmation of the hammer formation and the bearish indicators happened with the index moving downward last week.
Trading last Friday saw a white candle with a relatively large value turnover; A sliver of hope that the current downward movement by the index is countered by the bullish actions last Friday. However, though this may bring a respite to the downward movement, there is still no certainty that this will evolve into succeeding bullish actions. When I was looking at individual stocks, I did not see any significant trading actions that would support further bullish movement. The trading actions of the different stocks were mixed and it is most likely that the index would move sideways for the coming week, trading between 3820 and 3950.
Even if this is not a bullish scenario that we would like to happen, the sideways movement is something most welcome, considering the current crisis brought about by the recent disaster in Japan and turmoil in the middleeast, which logically should have caused a larger dip in the market.
If the sideways movement does materialize, do observe if the index is able to create a new higher low. A new higher low means were on the first step to a possible recovery path.
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