PSEi (Chart:
Daily Resistance: 4390/4410/4560 Support: 4280/4200/4180)
The index had a
short lived rally on the first 2 days of trading last week, but reversed on Wed
and has been moving downwards since.
With the upward movement made by the index on the first 2 days of
trading, this confirms a bearish divergence for the index, with the index
moving higher and both RSI and Stochastics moving lower.
It is also
evident on the chart that the index is no longer able to sustain upward
movement as seen on the black candle stick formed on Wed, having a short real
body and a long wicker. This means there
were bullish sentiments during the day, but were overcome by bearish sentiments.
Up until when
this bearish sentiments would continue is still something to be observed. As of current, a rising wedge can be seen on
the chart and the recent bearish move could be interpreted as a break down from
the area pattern. The possible target
level for this area pattern is near 4200.
This is the same level as the previous low last Nov 3.
It is still a
wait and see whether this recent bearish movements in the index would become a
full blown bearish sentiment or if support at 4280/4200/4180 would prevent this
bearish sentiment to continue. As of
current, the MACD seems to be siding on bearish sentiment, with the signal line
just about to cross below the moving average line.
For next week,
expect the index to move downward to sideways. Keep watch of the support at
4200, if index moves below that level, it would be prudent to sell for the
moment. Remember that there is still the
possibility for the big head-and-shoulder formation to materialize and the
index moving below that level would already be 1/3 of its way to accomplishing
that area pattern.
No comments:
Post a Comment