The Philippine Stock Exchange Index (symbol: PSEi) reached for a higher high this week, but the bigger picture shows some exhaustion has set in.
Compared to last week, the PSE Index set a new marginal high of 6,908.59 on Tuesday, but the market was not strong enough to maintain it. Eventually, the index succumbed to selling and closed the week 0.09 percent lower.
Nothing is surprising so far. Bulls are doing a remarkable job of controlling the outpost at 6,800, but the question is whether they will be able to do the same in the coming weeks?
The 6,800 level and the ascending channel are intact but we could see more bearish pressure in the coming weeks as bears are competitive enough to fight for lower prices.
The exciting battle continues, so keep your eyes glued on 6,800 and 6,600.
The Key Areas list remain the same since the PSE index is still trading within the major areas of concern.
Key areas to watch:
Resistance: 7,000, 7,200-7,400
Reference chart: http://www.tradingphoenix.net/2013/12/30/psei-the-year-ahead/
Where do you think the index is headed to this week? What is your prediction for the May closing price? Share your thoughts below!