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, May 12, 2008

PSEi 5/12/08 PHILIPPINE STOCK MARKET TECHNICAL ANALYSIS

PRICE AND TURNOVER
Close: 2,803.49
Change: +24.07(+0.87%)
Value: 9,837,383,000

MARKET BREADTH
Net Advancing Issues: 14
Net Up Volume: -49,875,660
Net Foreign Buying: +3,885,353,630

MULTIPLE TIMEFRAME TECHNICAL ANALYSIS
*** MAJOR CONSOLIDATION : Prior support 2034 | Prior resistance 3896 | Double top on the weekly chart | Price objective 2034
*** INTERMEDIATE DOWNTREND : Motive wave | No visible support | Prior Resistance 3050 | Measured move objective: 2500
*** MINOR DOWNTREND | Corrective wave | Prior Support 2712 | Prior Resistance 2956 | Broken trendline | Price objective: Intermediate trendline

OUTLOOK
The short term trend is on the 2nd day of a corrective rally. Today's higher close breaks above the short term trendline, an early alert for a potential trend change that is subject to near term confirmation. For now, the declining trends rule. Am looking at this correction to capitulate at or near the trendline resistance before resuming its descent.

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