The Philippine Stock Exchange Index (symbol: PSEi) has been bruised throughout the week, but bulls held on and investors gobbled up several stocks trading at attractive price points.
The index rose over 29 points on Friday despite an overwhelming number of decliners that day (108 stocks declined, only 68 stocks rose). Friday’s gain was enough to erase the prior 4-day losing streak and swing the index back into positive territory, albeit only 0.07 percent on a weekly basis, for a second consecutive week.
Key Areas List
The Key Areas list has stayed unchanged as the index remains confined within the key areas.
Key areas to watch:
Resistance: 7,000, 7,200-7,400
Support: 6,800, 6,600-6,700
Reference chart: http://www.tradingphoenix.net/2013/12/30/psei-the-year-ahead/
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Bears were active throughout the week but they got a surprise on Friday when buyers appeared in droves at a time when the index closed in on the 6,800 level.
Friday’s mini-buying spree enabled the index to end the week on a better footing at 6,894.23, which came near our ideal weekly close of 6,900. Will this be good enough going forward? We don’t know. But we do know now that bulls are on defensive mode around 6,800. I want them to be on an offensive mode as well to aim for and break 6,900-7,000 (the initial goal for this month).
Will August be a gloomy “ghost” month? We’ll find out in the next four weeks. Stay defensive and monitor the weak stocks in your portfolio. Consider realizing some gains as well, if you find it necessary.
Where do you think the index will head to this coming week? Share your thoughts below!