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, April 18, 2008

PSEi 4/18/08 PHILIPPINE STOCK MARKET TECHNICAL ANALYSIS

OUTLOOK
The 2-day rally fails to catch traction and the local index drops on moderate turnover amidst heavy foreign selling. Today's downtick and lower trading range reveals the underlying weakness of the market, the frailty of sympathy (with the Dow) and correction rallies, and the futilily of using trend following systems to trade against the direction of major trends. The technicals of this market remain unchanged and we should not expect any probable shift in direction until we see a break of the intermediate trendline to the upside. Another major cause for concern is the cumulative Net Foreign Buying indicator. From a mild recovery in the recent weeks, it has wiped out all its gains (and more) in this week alone. As of this week's close the Cum NFB has set a record low for the year of -16.9B.

PRICE AND TURNOVER
Close: TODAY 2,915.67 * EOPW 2,940.98 * EOPM 2,984.67 * EOPY 3,612.98
Change: TODAY -24.81(-0.84%) * WTD -25.31(-0.86%) * MTD -69.00(-2.31%)
* YTD -697.31(-19.30%)
Value: 2,411,117,000

MARKET BREADTH
Net Adv Issues: -24
Net Up Volume: -172,142,040
Net Foreign Buying: TODAY -535,379,919 * WTD -1,375,321,853 * MTD -1,037,636,806
* YTD -16,858,340,774

TECHNICAL ANALYSIS
Major consolidation * Intermediate downtrend * Minor downtrend * Support 2750 * Resistance 3050 * Broken short term trendline on the daily chart * Potential double top on the weekly chart

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