The Philippine Stock Exchange Index (symbol: PSEi) started the month of February with a bearish tone. Price moved down during the first two days of the week, and the (incomplete) ascending trendline discussed last week had been easily broken, in the process.
However, the index bounced back in the last three days and closed just above the 6,000 level on Friday.
Have bears set the pace for this month? Bulls must fight back with an attack on the 6,200 level, simultaneously defending the 6,000 critical mark.
TP’s Advice: Stay cautious.
Key areas to watch:
Resistance: 6,200-6,300, 6,500
Support: 6,000, 5,700-5,800
Reference chart: http://www.tradingphoenix.net/2013/12/30/psei-the-year-ahead/