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Sunday, September 23, 2012

StockWatch (Sep 24-28, 2012): PSEi


PSEi (Chart: Daily      Resistance: 5370   Support: 5400)

The existing resistance line proved to be a strong hindrance to the upward movement of the index.  The index was only able to go as high as 5367 before buckling down to close at 5350.  

The bears have shown their strength through the resistance line, it is now a wait and see if the bulls will also be able to show their strength if the index is supported from falling further by either the 10 or 50 day MA.   If the bulls are able to do so, then we may be seeing our index trade in an upward biased trading range between the resistance line and 10 day MA.

If the bulls and bears battle it out, then we may have a possible upward channel or worst case a rising wedge, which is a bearish formation.

For now I would suggest to hold off any plans of buying until probably the index is able to move above the resistance line and the MACD is able to hold its position above the zero line.

It is not yet time to unload, but if the rising wedge does materialize, then start thinking of unloading on the way up.

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