The Philippine Stock Exchange Index (PSEi) may soon head to its downside target of 5,800 given its breakdown from a head and shoulders pattern (kilroy) last week. An oversold reading in its RSI, however, may lead to a short rally soon although such reading may not be as effective on an intermediate downtrend. In any case, a resistance may still be met at its former support at 6,200. The ‘breakdown’, though, will remain in effect as long as the index trades below 6,200. A bounce, however, above 6,200 may invalidate the breach and send it back to 6,400.
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