StockWatch (Sep 17-21, 2012): PSEi

PSEi (Chart: Daily      Resistance: 5360         Support: 5230)

The index was able to gain some positive movement on the last trading day last week, but stopped short just below the support-turned-resistance line.

All indicators are confirming the recent positive movement.  We now only have the support-turned-resistance line to conquer and it is a wait and see moment if the index has the strength to sustain the recent upward movement and cross above that resistance line.

If the index is able to move above the resistance line, this can be a signal to get in the market once again.

Do watch out for the RSI, as it nears the overbought level.  If the index has the strength, RSI @70 would not even matter, but if otherwise, that RSI level can be a resistance for the index.