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Friday, October 07, 2011

StockWatch (Oct 10-14, 2011): PSEi


PSEi (Chart: Daily Resistance: 4050/4100  Support: 3860/3715/3630)

The index made a dip on the first half of the week and recovered on the second half.   From the looks of it, the index is moving sideways with large swings. If the resistance at 4050 still holds by next week, this may lead to the sideways ranging movement of the index.

The index seems to be bullish on the second half of last week, but it is still not recommended to get in the market, as we are unsure of the index’s trend for the past 2 weeks.  If the index rallies, I would suggest that you sell your positions rather than holding on to them.  There are a lot of other resistances along the way and you would be holding on to those stocks for a long time and also, when the 5th wave materializes, you would incur more loss.

Observe as well the RSI reaching 50 level, as of current it is still possible that the index would encounter resistance when that level is reached.

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