The Philippine Stock Exchange Index (symbol: PSEi) made a fleeting glance at a new high this week, putting it a step closer to the 7,000 major psychological level.
The index on Thursday reached 6,652.76, the highest since August 14, 2013’s close at 6,656.61. Despite this move, the PSEi traded within a very tight range, indicating bulls have reached a resistance stronghold.
Price can definitely decline from this point, but the ideal scenario is seeing bulls hold their ground at 6,600 and simultaneously aiming for 6,700.
I should also point out that we now have an ascending channel on the chart. Keeping this channel intact throughout April would help maintain the bullish picture.
The PSE index went sideways this week, so there is no change in the Key Areas list.
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/