The Philippine Stock Exchange Index (symbol: PSEi) has suffered a minor decline this week, despite the considerable performance of bears during the previous week.
A new potential ascending trendline has formed and it could guide us in terms of the near-term direction of the PSE index. Be sure to watch this line in the sand.
Sentiment has not changed: stay vigilant as long as price is close to the 6,300 level. Consult the previous blog article if necessary.
Bulls should take this opportunity to prop up the PSE index this coming week. Best end-scenario would be a weekly close near or above the 6,500 level.
Key areas to watch:
Resistance: 6,500, 6,600-6,800
Support: 6,000, 6,200-6,300
Reference chart: http://www.tradingphoenix.net/2013/12/30/psei-the-year-ahead/