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Sunday, February 05, 2012

StockWatch (Feb 06-10, 2012): PSEi


PSEi (Chart: Daily Resistance: 4820  Support: 4700/4590)

The index created a new high last week, accompanied by high value turnover.  However, I would like to advise caution in further buying from this point forward, for the reason that all indicators are pointing to a negative (bearish) divergence.

Looking at the RSI and MACD, these indicators have created a lower high, the complete opposite of what the index created last week.   This means a negative divergence is happening and that the index may start to move south anytime in the very near future.

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