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 28, 2008

PSEi 4/28/08 PHILIPPINE STOCK MARKET TECHNICAL ANALYSIS

The PSEi hits another record low for the year as it drops 38.5 pts (-1.39%) following Friday's lackluster performance of its NYSE counterpart. Today's downtick breaks below the Mar-18 reaction low and the psychological support of 2750 giving yet another seal of confirmation to the intermediate downtrend. A quick glance at the daily and weekly indicators do not show any slowing of the decline. Net foreign buying of 169M fails to lift the stock average. Any near term rally will likely be a technical correction.

PRICE AND TURNOVER
Close: 2,739.44 * Change: -38.49(-1.39%) * Value: 2,403,905,000

MARKET BREADTH
Net Adv Issues: -66 * Net Up Volume: -463,119,920 * Net Foreign Buying: +169,024,329

TECHNICAL ANALYSIS
Major consolidation * Intermediate downtrend * Short term downtrend * Support 2750 -broken today * Resistance 3050 * Double top on the weekly chart suggests a potential decline to 1800 * The measured move method yields a near term objective of 2500

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