Wednesday, January 23, 2008
PSEi - 7th black candle
PSEi = 2978.41 ()
PSEi formed another black candle for the 7th time.
PSEi formed a gap down black candle.
news: US markets made an emergency rate cut of 75 basis points
If PSEi tries to rally on this news it must move above the 61.8% fibonacci retracement level of the recent downtrend, which is at 3300+.
Resistance will most likely be felt at yesterday's high of 3122.
Looks like RSI will bounce from the 21.65 level. Will it test the resistance line of the RSI?
PSEi will have to hit the parabolic SAR, which is now at 3521, to give us a signal that indeed PSEi is trending upwards.
Good luck to all traders!