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The Phisix daily chart
updated every Fridays, last update -
3/16/2012
Parabolic Spike
in the Works?
charts are courtesy of Metastock
Legend:
blue lines - range for Tsupiteros
dotted blue lines
- range for Position Traders
red lines - important trend lines
| Short-term Traders/Tsupiteros: |
Medium-term/Position Traders: |
| Support - 5000
to 5030 |
Support - 4850 |
| Resistance -
5180 |
Resistance - 5210 |
| Trend -
Up |
Trend -
Up |
| Recommendation -
Buy |
Recommendation -
Take profits |
The PSEi broke above its resistance at
5070 and has catapulted to the upside. At current levels, we are now
just 55 points away from the market’s medium-term resistance at 5200.
The question is, are we going to stop there? From the way I see it, the
market is now in a parabolic spike. What happens in a parabolic spike?
The bulls capitulate and prices go vertical. If so, then, we may
actually break above 5200 and head to levels where people never expected
the market to go. 5300? 5400? 5500? Your guess is as good as mine. Mind
you, however, that parabolic spike mark the end of the trend. Thus, the
tricky part here is that, although prices will accelerate upwards, the
forthcoming correction, if indeed we are in a parabolic spike, will also
be equally violent. I can’t blame Tsupiteros if you took profits from
your positions yesterday, only to buy it back higher today. Just place
mental stops on the break below the 5000 level. Position-traders, o the
other hand, are recommended to capitalize on this parabolic spike to
start taking profits from your positions.
Notes:
Short-term
Traders/Tsupiteros vs. Medium-term/Position Traders: Recommendation
for short-term traders or Tsupiteros are meant to be used by traders
whose holding period are limited to one day to two weeks. Medium-term or position
traders are meant to be used by traders whose holding period are two weeks
to three months. Long-term investors whose holding period is more than
three months should not follow these recommendations.
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