Wednesday, November 10, 2010

Random PSE Musings: Correction Continues, Presenting Some Buying Opportunities – November 10, 2010

Much needed correction is now happening on the PSEi, as the 4,260 immediate support level is now breached. Next support is seen at the 4,140 level. On the 4th straight decline, a technical rebound could occur, so try to watch out for it and use it to your advantage. 

At this point, I think the PSEi may go into a consolidation period before deciding to continue establish new highs, or to go further into a corrective mode, and consolidate between the 3,900 and the 4,400 level. It remains to be seen on what’s gonna happen next, but stay tuned.

But now, on the 4th successive decline of the Philippine Stock Market, it is now probably to try to bottom feed heavily sold out issues, and sell on the technical rally which could happen tomorrow, or on Friday. Still, don’t take this as a reason to buy, just saying that there’s a chance a technical rebound can happen anytime, before going lower again, if ever.

Good luck with your trades!

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