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, April 14, 2008

PSEi 4/14/08 PHILIPPINE STOCK MARKET TECHNICAL ANALYSIS

OUTLOOK
The PSEi gaps down and drops a further 23 pts (0.77%) on moderate volume. It's on the 7th successive day of decline. A minor pause or correction in the short term trend will not be surprising but it is unlikely that it will go beyond the intermediate trendline. I've drawn a potential progression of the Elliot Wave Pattern (EWP) for the benefit of Elliotists who are planning to trade a possible 3-wave correction.

PRICE AND TURNOVER
Close: 2,918.27 * Change: -22.71 -0.77% * Value: 2,047,806,000

MARKET BREADTH
Net Adv Issues: -32 * Net Up Volume: -207,875,460 * Net Foreign Buying: +107,029,645

TECHNICAL ANALYSIS
Support 2,800 * Resistance 3,000 * Major consolidation * Intermediate downtrend * Minor downtrend * Possible unfolding wave (b) of an Elliot Wave Pattern (EWP) * Double top on the weekly chart * Near term price objective 2,500

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