Long term:
PSE's expected correction deepens sending us to our 2 month lows. MACD and RSI still looks weak, San Miguel, Petron and Meralco group of companies' possible Peak and overall has no signs of strength yet for the market. Overall, charts for Long term still bullish with Major support around 3800-3900 area. Breaking down below those numbers will send our PSE equity even to a lower level.
3800-3900 area also is a good point where 200-MA (in red line) meets, and have a very good chance of reverting us to a bullish state. I am bullish in our economy, its just that sending us to as high of 4600 gave us a really overbought scenario which usually takes around 6-9months consolidation phase that we are encountering at this moment.
Short term:
With various bluechips and 2nd liners breaking down of its important support and range (including FLI,MEG, AP), and tempting to break down like (MBT, AC,ALI,RLC). We will surely have a hard time recovering and visiting the top (months period), this consolidation phase really sent us to new weekly lows.
Tho PSE has a good 3950-4200 Trade the range frame. I am still on a HOLD rating to PSE equity, especially with the new Fresh breakdowns. I am not that confident that PSE will hold into its 3950 support, and might breakdown that hits another sell-off.
Another possible scenario forming is the Light Blue short term downtrend line. If ever it really broke down its 3950 support, Light Blue short term downtrend indicate a possible 3800 area support, in line with 200MA support.
I'll be waiting for PSE market to reach around 3800-3900 level (long term support above) before I'll start accumulating and buy-back all the shares i have sold last 2010.
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