The Philippine Stock Exchange Index (symbol: PSEi) completed its first bearish week in June, following a marginal rise last week. PSE added 31.57 points or 0.47% on Friday, but this was not enough to bring the index to close the week in the green.
Looking at the price action seen this week, we could see that bears made another effort to attack the 6,600 — the third time since April. Bulls gladly responded with another successful defense of their fortress at that level, although they were not able to secure the 6,800 level.
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/
Battle of 6,800 rages on
I still consider the 6,800 level as a major short-term line in the sand with 6,600 and 7,000 serving as flashpoints. Bulls would considerably improve the bullish tone if they will close the index next week (and this June) right at or above 6,800, and it has been my view that this will happen. We’ll find out soon enough!
Where do you think the index will head to this coming week? Share your thoughts below!