PSEi rallies back up
3 October 2007PSEI DAILY CHART
It is, in hindsight, a very big V shaped recovery. Judging from the volume selling on the way down, more people are out than in at current levels. So yes, index may surpass its recent high of 3820, and a correction or before or after this point offers no shame at all for the bulls.
Oscillators (encircled in blue) have risen above corresponding July previous oscillator highs, thus emboldening the cause of the bulls and easing away from a double or triple top scenario. Buy on dips if October offers any chance to collect, as we draw nearer to seasonally strong quarters for bulls.
TEL DAILY
Bringing our index past 3820 would likely come from heavyweight TEL, who is just coming up from its uptrend channel. Uncharted territory upwards suggest an upmove well above 3100.
MBT DAILY
Blue chip laggard MBT suffered heavily from the subprime/financial selloff, and has yet to recover even up to its downtrend resistance near 60. Eventual target would be previous high of 63.50. A break of this downtrend line would be similarly pictured in ALI's own break below:
ALI DAILY
PA DAILY
Of course, what's a bull market without rotation to second and third liners? Pacifica enjoyed an early run after its prolonged suspension, and has now rested fully while volume has dried up and prices consolidated at the highs, and that is often a bullish sign. This market action typifies more stronger hands who bought and held from the tsupiteros. Bollinger band has narrowed and suggesting a big move soon, and if the uptrending channel is to be folowed, upper channel target may be .29 - .30
ISM WEEKLY
Speaking of up trending channels, ISM's four year long weekly chart suggests buy at current midpoint .045 and below, and it will range to near .06.
ISM DAILY
Overshooting my .045 target, ISM traipsed to .055 before doing a 50% fibonacci retracement (.03 - .055) to correct the other day to .042, thus fulfilling its corrective phase.
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