The PSEI was in a more than 3 month uptrend which started at Feb 2014 to a portion May 2014. After which the PSEI dropped from the uptrend, where it went no where for a couple of weeks until it surged again and flirted with 7,000 for two trading days.
At its highest close, sellers prevailed again with the notion that the market was relatively expensive. Dropping the market to where it is now at 6,830. At this point the market is 169 points down from it’s highest close of the year at 6,999. If you look at the chart below you can see that the PSEI tried to form a short uptrend in the middle May 2014 which also got broken by the end of last week.
Today we are faced with the situation where the PSEI has dropped from the short and mid term uptrends and is facing a lot of selling / profit taking as it moves closer to the 7,000 range.
If you look at the chart above the PSEI can go down to 6,700 (to as low as 6,650) if it fails to hold the 6,8010 level. If the PSEI holds and rebounds, we may see the stock move up slightly but may experience selling from 6,885 to 7,000. If you are a person who wants to look at the market at a regular basis, our goal is always to buy when the market is rebounding from support levels adn stay away from the market if it is dropping.
Thank you so much for contunually visitng this secion of marvingermo.com. I do hope this has been a valuable fountain of knowledge for you as you move towards financial freedom. God bless you and may this week be a great trading week for you!
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If you’d like to learn more about using Stock Charts to be able to effectively trade the markts. I’d like to invite you to our upcoming charting seminars:
- September 13th Technical Analysis: Chart Patterns and Oscillators (afternoon)
- September 13th How to Find The Perfect Timing in Buying and Selling Stocks (morning)
My 2nd book Stock Smarts: Winning Strategies is now out! Click the Link to Register and Order.
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*pictures via google search
*charts via chart nexus
