The Philippine Stock Exchange Index (symbol: PSEi) welcomed the month of March with a bullish tone and rose 0.88 percent to close the week at 6,481.83. The weekly winning streak continued (now on its 4th) and the index has pierced the 6,500 level on its way up.
However, the chart below shows my concern, and that is the price has risen with a steep slope (see ascending trendline). Such price action is unsustainable, and I expect the index to give back further gains in the coming week or so.
If you recall, I talked about future consolidations and I now expect to see those starting this coming week.
The same set of price areas need to be monitored. Watch closely whether or not buyers can conquer 6,500 this week. It would be a plus if any potential decline will stall before 6,200-6,300.
Key areas to watch:
Support: 6,000, 6,200-6,300
Reference chart: http://www.tradingphoenix.net/2013/12/30/psei-the-year-ahead/