The Philippine Stock Exchange Index (symbol: PSEi) could be in trouble as it, again, struggled to even touch the 8,000 major level on its second attempt from the underside.
Since Labor Day was celebrated on Friday, the index traded for only four days and April closed on Thursday at 7,714.82. This is at a much weaker position compared to when the month started.
Key Areas List
The Key Areas list of the PSE index has reflected the recent price action.
Key areas to watch:
Resistance: 8,000, 8,500, 9,000
Support: 7,500-7,700, 7,300
New reference chart: http://www.tradingphoenix.net/2015/01/05/psei-in-2015-the-year-ahead/
The chart is essentially the same one I’ve posted last week. As you can see, the bearish script last week has been partially fulfilled, as the index is finding it difficult to get back above the 8,000 level.
We could be seeing the consolidation forming now, that is, if the Thursday close is a false break to the downside.
If this is not a false break, then we are witnessing a significant technical damage to this chart. If this is the case, the index is fulfilling the bearish script I’ve been concerned of for many weeks now.
More pressure on the 8,000 level is needed.
Bulls need to fight for control of the 7,800-7,900 area and then try to get past 8,000 again.
TP’s Advice: The second quarter could get nasty or inactive. Make sure to monitor your stocks. Avoid adding to your portfolio, unless you find compelling reasons or signals (technical or otherwise).
Where do you think the index will head to this coming week? Share your thoughts below and Like our Facebook page as well!