PSEI August 15 2008 charts

PSEI DAILY CHART

A break above the 10 month downtrend established last October 2007 had everyone wondering, "is this it, the bottom, or just a bear market rally?"  It had all the ingredients of a decent rally: lower low price bar creating bullish divergence from its rsi, and breakout of channel.

However, found lacking were net foreign buys, of which they were actually net selling daily, ample volume, and sustainability.

Blinding ourselves from all external factors, the chart paints that a rally to anywhere from 2900 to 3000 may still be possible.  The question now is, do we buy on dips? For the adventurous, the 23% fibonacci retracement points to minor support at 2670.  The argument for gap watchers fit in right with the 38% fibonacci support of 2600.  And there is that safe 50% fibo just right above 2500.  All of these three create plausible higher low scenarios for that journey towards 2900-3000.

TEL DAILY

The TEL daily mimics a similar breakout, as perhaps most other bluechips and other popular secondliners.  TEL's rally came in late relative to the other PSEi leaders, but was prolonged further at the end, and its breakout point has already been reached.

 OIL CHART

for this Oil chart nicely done in textbook trendline by financemanila forumer Roiking, it is clearly established that support lies just below $110 .

OIL CHART

His gold chart illustrates a similar textbook application of drawing an uptrend, which points to support lying somewhere from 700-750.

As with diagonal sloping trendlines up or down, length of time to get to trendline is detriment alto determining exact price.  

 

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