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Saturday, July 21, 2012

StockWatch (Jul 23-27, 2012): PSEi


PSEi (Chart: Daily      Resistance: 5252         Support: 5180/5070)

It seems that the recent 3 week bullish activity that propelled the index to new highs was unable to sustain its upward momentum and right now with the past 2 weeks of downward movement, the gains made on that 3 week bullishness is now 50% gone.

The index is now below the 10 day moving average, which previously stood as a support line and is now a resistance for the index.   As long as the index is below the 10 day moving average, I would like to suggest avoid buying and just maintain your position or lessen it.  

Do watch out for the 50 and 100 day moving average that is just a few points away from the current index level. If the index moves below that 2 moving average lines, be prepared for a long wait before the index is able to create a new high.

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