PSEi, 1/18/08
20 January 2008
- Change: (Daily) down 80pts/-2.5%, (Weekly) down 335pts/-9.6%
- Value: 4,956,826,325 (excl special block sale of BDO)
- NFB: -966,546,598
- Net Adv/Dec: -143
- Trends: Major trend undefined, intermediate downtrend, near term downtrend
- Momentum: Accelerating
- Support and resistance: 3171(Aug2007)/3514(Jan2008)
The PSEi ended the day without covering the opening gap indicating a healthy supply of sellers until the close. The accelerating downtrend is proving to be unnerving and painful to those who are still holding long positions. The extended decline opens our mind to a possible bounce but that doesn't mean we should be buying now because we don't know (a) when the bounce will occur and (b) how much deeper the price will decline before the bounce actually happens. If a correction does happen and we initiate long positions, keep in mind that they should be short term trades since the correction will likely be shortlived and the underlying downtrend remains formidable.
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