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).

Friday, March 7, 2008

PSEi 3/7/08 WEEKLY MARKET REVIEW



PRICE AND TURNOVER
Close: 3,028.73
Change: TODAY -88.11 -(2.83%) WTD -101.26 (-3.24%)
Value: 3,684,458,000

MARKET BREADTH
Net adv/dec issues: -25
Net up/down volume: -114,639,120
Net foreign buying: -279,341,156

TECHNICALS
Major term consolidation, intermediate and short term downtrend
Core Support: 3,000 Resistance: 3,800
Immediate Support: 3,000 Resistance: 3,300

OUTLOOK
Today, the PSEi backflips from yesterday's advance, in synch with the Dow's decline. It gaps down and closes lower on a downtick without seeing positive territory. Using the daily chart, we see that the intermediate trendline from Oct-2007 remains valid notwithstanding a minor interruption to the upside occurring between Dec-2007 and Jan-2008. Today's move down and close at the low suggests that selling may continue on Monday. The double top formation continues to be a cause for concern in the weekly chart. The intermediate and short term trends conspire to drive the index to a retest of the 3,000 support, the next critical level. Except for the intraday time frame, the charts today show no actionable technical signal for the major, intermediate and short term.

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