The Philippine Stock Exchange Index (symbol: PSEi) posted back-to-back weekly gains and bulls are slowly gaining the upper hand as the close of February and the first quarter nears.
The index started the week comfortably above 6,000 and sellers did not even get a chance to revisit this critical level. This is really good news for bulls and they should keep it this way for the coming weeks.
For this brand new week, I would like to see a decent follow-through move northward. Any declines should find support ahead of or around 6,000-6,100. If this area gets breached, I would be worried and question the strength of the recent upmove. I would prefer to see future consolidations, if they will occur, to have bullish undertones.
Protect your portfolio and stick with your best picks. Don’t get sloppy or your portfolio will suffer: avoid messing around with stocks that you have not carefully studied.
Key areas to watch:
Reference chart: http://www.tradingphoenix.net/2013/12/30/psei-the-year-ahead/