This blog is committed to the serious study and valid understanding of technical analysis and its objective application to stock selection, risk management and execution primarily in the context of trading stocks listed in the Philippine Stock Exchange (PSE).

Monday, March 24, 2008

PSEi 3/24/08 PHILIPPINE STOCK MARKET TECHNICAL ANALYSIS

PRICE AND TURNOVER
Close: 2,867.50
Change: +49.92(+1.77%)
Value:2,165,174,000

MARKET BREADTH
AdvDec: +29
UpDnVol: -106,527,180
NFB: +228,809,248

TECHNICAL ANALYSIS
Primary consolidation * Secondary downtrend * Short term upswing * Support 2,700 * Resistance 3,300 * Short term bounce on the daily chart * Double top on the weekly chart *

OUTLOOK
We see a back to back advance of the PSEi closing higher for the second consecutive session. Both days are accompanied by Net Foreign Buying that comes after 8 successive days of Net Foreign Selling. Today's move confirms a bounce off the new 3/18/08 support - shy of 2,800 - that could launch a correction rally up to (a) the 3,000 level assuming a role reversal of the prior reaction low on 1/22/08, or (b) the trendline resistance. Unless a revesal or consolidation interrupts the intermediate downtrend, the double top in the weekly chart will continue to weigh down sentiment with a downside TP of 2,200.

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