PSEi (Chart: Daily Resistance: 4340 Support: 4260/4220)
The index just moved sideways last week, but the movement is marred with a lot of sell down action.
As I mentioned last week there is a potential for the index to form a double top or a head-and-shoulder formation. What I forgot to consider is that there is also a potential for the index to form a bullish ascending triangle. However, we are still to see higher lows to be formed for the ascending triangle. If the index continued to move lower towards 4200, this would somehow eliminate the possibility of the ascending triangle, giving more possibility for the double top or head-and-shoulder formation.
There is still no indication from either the stochastic or MACD that any bullish action is imminent, so continue to be liquid until we are able to see positive improvements on the index.
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