PSEi: The Week Ahead, April 6

FacebookPinterestPrintEmailShare this!

The Philippine Stock Exchange Index (symbol: PSEi) ended the first week of April with a worthy bang. The index closed at 6,561.20 or 3.17 percent higher week-on-week, buoyed with five straight days of higher highs and higher lows.

The index fulfilled the best end-scenario mentioned last week, and this augurs well for bulls.

The potential ascending trendline mentioned last week fulfilled its role and is bound to get tested in the near-term.

I would like to see a strong push above the 6,700-6,800 area in the next 2 weeks. Bulls could contend with the 7,000 level, a major hurdle, as early as 2-6 weeks from now.

On the downside, bears would make good progress if they can touch, and eventually break, the 6,300-6,400 area. Bulls must keep this in mind and prepare well for retaliation. Their first major assignment in the coming weeks is to turn the 6,500 level into a solid and sturdy support.

Since the PSE index made solid progress, I have updated the key areas list below.

Key areas to watch:
Resistance: 6,700-6,800, 7,000
Support: 6,000, 6,300-6,400, 6,500

Reference chart: http://www.tradingphoenix.net/2013/12/30/psei-the-year-ahead/

Philippine Stock Exchange index_PSEi Daily chart, April 4, 2014

PSEi Daily chart, April 4, 2014

Submit a Comment

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

X

Forgot Password?

Join Us