The Philippine Stock Exchange Index (symbol: PSEi) finished the first week of the Christmas month with a bearish tone against a backdrop of a typhoon (Typhoon Ruby or Hagupit) tearing through the country during the weekend.
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The index declined 69.29 points or 0.95 percent to close Friday at 7,230.56. Friday’s volume and value turnover were 2.26 billion shares and P11.88 billion, respectively.
Key Areas List
The Key Areas list of the PSE index has not changed.
Key areas to watch:
Support: 7,200-7,250, 7,000, 6,800-6,900
The index did set meager gains in the first three days of the week, but these gains have been easily erased in the last two days, particularly with the decline through 7,200 on Friday. The December 5 low of 7,178.45 is the second lowest low since November.
Another problem is the PSE index failed to create a higher high and instead respected the November 26 high of 7,372.57. As mentioned to our Premium Subscribers last week, I had preferred to see bulls continue pressure on the upside in order for bearish threats at 7,200 to ease. 7,200 remains a critical level and must continue to hold off any threats in the coming days and weeks. Be sure to check the Key Areas list.
And to repeat my last week’s suggestion, I do not encourage people to create new positions at this time of the year. (pocketing gains in the last few weeks and months has been preferred, and suggested, over creating new positions)
Did the recent typhoon cause the drop late last week? If so, will we see a rebound in the coming week? We’ll soon find out.
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