The Philippine Stock Exchange Index (symbol: PSEi) made a significant development this week as price crossed the 7,000 psychological level. It even gapped up on Thursday and came very close to 7,100 in the process.
The 52-point drop of the index on Friday (market breadth: 55 gainers, 120 decliners, 49 unchanged) made a relatively mild dent on the weekly close and, more importantly, was insufficient to bring price to close below the key 7,000 level. The PSE Index closed at 7,008.51 or 1.86 percent higher on a weekly basis.
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
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As if following the script we laid out last week, buyers kept the upside pressure strong and easily achieved the initial goal of a break and close above 6,900-7,000.
I talked about the 7,000 level in my Mid-Year Analysis, and so far we are seeing good action across this level. Bulls need to stay ahead as the third quarter of 2014 is partially complete.
The strong bullish close this week is a step in the right direction, but I’d like to see more proof that August is already in the bag for the bulls.
With the 6,900 short-term line in the sand as backdrop, I’d prefer to see additional bullish weekly closes above 7,000 throughout the rest of August. Would that be too much to ask? We’ll see.
Where do you think the index will head to this coming week? Share your thoughts below!