As we enter August 2014, where we normally see a lot of Chinese investors leave the market for the cyclical “ghost month” phenomenon of low liquidity and volume. We go back to what the charts says on where the market is. The charts are our reference to show us over the short term where the market is headed.
As we look at the charts it still looks the same as what it was a few weeks back. The PSEI is still sideways. With a lot of selling pressure at 7,000 range and short term buying optimism at 6,820.
If the PSEI drops lower:
If the PSEI falls below 6,820 we may expect the market to go to as low as 6,697 over the short term.
If the PSEI somehow goes higher:
I really believe that we need volume to make this happen. But just incase that the PSEI pushes higher and breaks above 7,000. It may challenge the 7,100 range over the short term.
I hope these charts help you find a reference point in your trades and would help you know when is the best time to come in and out when it comes to your investments. My desire is to see you win in the stock market repeatedly over the long term and that you may find your own winning strategy that will make you profitable in the stock market!
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- September 13th Technical Analysis: Chart Patterns and Oscillators (afternoon)
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