PSEi (Chart:
Daily Resistance: 5370 Support: 5400)
The existing
resistance line proved to be a strong hindrance to the upward movement of the
index. The index was only able to go as
high as 5367 before buckling down to close at 5350.
The bears have
shown their strength through the resistance line, it is now a wait and see if
the bulls will also be able to show their strength if the index is supported
from falling further by either the 10 or 50 day MA. If the bulls are able to do so, then we may
be seeing our index trade in an upward biased trading range between the
resistance line and 10 day MA.
If the bulls
and bears battle it out, then we may have a possible upward channel or worst
case a rising wedge, which is a bearish formation.
For now I would
suggest to hold off any plans of buying until probably the index is able to
move above the resistance line and the MACD is able to hold its position above
the zero line.
It is not yet
time to unload, but if the rising wedge does materialize, then start thinking
of unloading on the way up.
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