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/