Seeing some of PSE stock brokers recommending a BUY with target of 7000?
Is it now time to chase and BUY, or SELL?
Our initial target for PSEi for month of Jan was to safely reach 6200. And we did and continued to rally and gain momentum when it went above 6200. It did what exactly we predicted(based on psych).
Now stock brokers started to hype again PSEi with a target of 7000. I am nothing against it, but at this moment in time, where we are just starting to recover, it does not look right to be so bullish.
We will certainly reach 7000 soon, but I think not in Q1 or Q2 2014..
PSEi exceeded our target of 6200, and a breakout of 6200 will lead us to 6360 then 6420 before the critical 6500 resistance.
Last friday, we reached 6420, the 1st critical downtrend resistance medium term, I think we could be knocked off when we reached these level (6420-6500), as down trend lines in RED is in these area.
RSI is also well above 70, so I think, I think, a pullback soon is needed and could find support in these areas:
6261 - minimal support, but can be bought by short term traders
6200 - a stronger base
6025 - maximum support for the short term uptrend (IN BLUE)
I prefer to buyback around 6025-6200 for those who were able to sell some stocks last few weeks. And accumulate a lot if it is able to get back to 6025.
Cheers!
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