PSEi (Chart: Daily Resistance: 4200/4340 Support: 4080/3950)
The index has now breached the support line from April 2011 as well as the 65 day Moving Average. The index is currently retesting the support-turned-resistance line and based from the candle sticks formed, the bears are winning the battle. Specially last Friday, the bulls tried to move the index higher, but were unable to do so and the bears event went further with their victory, reclaiming the advances made by the white candle last Wed.
The breaking of the channel has a downward target level of around 4000. But prior to reaching that level, there is support at 4080 level which is the 130 day moving average.
MACD on the daily chart is now below the center line and MACD on the weekly chart has now touched the signal line and is about to cross below.
If the bearish sentiment starts to steam roll the bulls, then keep your eyes peeled for the 3700 level, this is the neck line of a possible double top formation.
I would suggest making use of the short rallies to get rid of your stocks and still keep liquid for the time being.
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