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 3, 2008

PSEi 3/3/08 TECHNICAL ANALYSIS


PRICE AND TURNOVER
Close: 3,079.99
Change: -50.00 (-1.60%)
Value: 2,592,028,000

MARKET BREADTH
Net adv/dec issues: -38
Net up/down volume: -141,435,530
Net foreign buying: -476,085,262

TECHNICALS
Intermediate and short term downtrend
Immediate Support: 3,000 Resistance: 3,300

OUTLOOK
The local index slips 50pts on the heels of a 315 pt decline by the Dow last Friday. Volume is moderate and today's decline comes after a three day upswing. The converging trendline and support lines continue to gain significance as we wait and see in which direction the PSEi will break. This is the next critical signal we are waiting for in the bigger scale. On an very short term basis, it will be reasonable to expect another decline tomorrow considering (a) todays lower trading range, (b) a lower close on a downtick, (c) all breadth indicators are negative indicating an accross the board bearish sentiment of participants which means a likely continuation of selling and (d) the intermediate and short term trends continue to decline.

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