PSEi (Chart:
Daily Resistance: 5100 Support: 4980)
The index is
now starting to form a downward trend.
We can see from the chart that the index has bounced off from a new
support line which is part of the downward channel.
The last two
trading days of last week created white candles but it still remains to be seen
if the index can move above the resistance line near 5100. If it does move above that level, it is a
welcome move for the index. However, if it is unable to move above the
resistance line, then it confirms the strength of the newly formed downward
trend.
Do observe the
RSI, lately the index has been respecting the significant levels of the RSI,
particularly the 50 and 70 level. Since early Feb of this year, the RSI has
been moving between 70 and 50 level.
Every time the RSI hits 70, it starts to go down, and does the opposite
when it hits 50 level. Right now RSI is
moving towards 70 level, so expect a possible reversal when it hits near 70.
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