PSEi(Chart: Daily Resistance: 5090 Support: 4900)
The index dropped 100 points on the first trading day last week, but proved to be non deterrent for bullish traders who pushed the index from the low of 4790 up and beyond the 5000 level ending at 5016.
From the chart, the index was able to get back inside an upward channel with resistance near 5090 and support near 4900. We have to wait and see if the index is able to move above the resistance line.
If you got in the market again last week, I would recommend going back in a range trading strategy, but as of the moment hold off the buying as the index is near the resistance line and then start selling when the index nears the resistance near 5090.
I would also suggest to appropriate lesser portion in trading. I still see that there is imminent danger, considering that the index is moving higher but the MACD, RSI and Stochastics are generally moving lower. Be on the watch for negative divergence when the index reaches resistance near 5090.
No comments:
Post a Comment