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