PSEi: The Week Ahead, March 24, 2015

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The Philippine Stock Exchange Index (symbol: PSEi) has showed considerable resilience amidst downside attacks seen throughout last week.

Philippine Stock Exchange index_PSEi Daily chart, March 20, 2015

PSEi Daily chart, March 20, 2015 c/o BBG

Key Areas List

The Key Areas list of the PSE index has remained the same.

Key areas to watch:
Resistance: 8,000, 8,500, 9,000
Support: 7,500-7,700, 7,300, 6,800-7,000

New reference chart: http://www.tradingphoenix.net/2015/01/05/psei-in-2015-the-year-ahead/

The Script

So far, the 7,700-7,750 proved supportive of bulls’ attempts to keep the ball in their control. Sellers were able to push through 7,750 but ultimately the week has been won by the bulls.

If bulls can keep up their control on 7,700, the next task is to continue solidifying their presence above this level. There is no need to rush through 8,000.

New lows remain a possibility as long as we don’t see newer highs. Price action has made some improvement but continue watching those support areas.

Remember the black curve in last week’s chart? If price action improves further, then that curve would be replaced by a (actually, there’s an ongoing) consolidation in the index. To keep this in favor of the bulls, we must see new highs in the next few days or weeks. Any prolonged consolidation could always go either way, so bulls must make a proactive step before bears do.

Where do you think the index will head to this coming week? Share your thoughts below and Like our Facebook page as well!

2 Comments

  1. billish triangle break-out on march 26 psei close! Will we now see 8000?

    • @ Ernie,
      Hello and thanks for your comment! 8,000 is now very close so it’s possible. But take note this is a major level. We need more buyers (than sellers) in the coming days or weeks to accomplish this well. It won’t be surprising to see a touch or near-touch of 8,000 followed by a strong downmove if buyers become overpowered by sellers. Please don’t forget to check out and share my latest article: http://www.tradingphoenix.net/2015/03/29/psei-the-week-ahead-march-29-2015/

      Thanks for visiting the blog and I look forward to your future comments!

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