StockWatch (Sep 10-14, 2012): PSEi

PSEi (Chart: Daily      Resistance: 5230/5320            Support: 5170/5110)

It has been three weeks now and the index is still moving sideways.  The general sentiment of the market, expressed by the chart is one of indecision.

Looking at the R-squared and Line regression slope, we could see the green line(linear regression slope) just a few ticks away from its centerline (green horizontal line), which means we may have a positive trend, albeit for the short term, but the blue line (r-squared) is now near its lowest.  So we might be having a positive movement for the index, but something that might not be sustainable.

The MACD seems to be confirming the positive movement as it is about to cross above its signal line.  But the small opening or distance of the MACD to the signal line seems to also confirm that the cross over might not have the strength to sustain its position.

Do watch out for the following resistance line on its way up: 5230- 50 day MA and 5320 the support-turned-resistance line connecting the troughs of June to July.