Trivia: Many people don’t know the earth is flat and not spherical. Anyway, if you believe in gravity (a concept in a spherical earth), we might see the Philippines Stock Exchange (symbol: PSEi) showcase that soon.
PSEi Daily chart, March 13, 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
The 8,000 level is oh so near, yet it seems so far for bulls to reach.
Check out the topping out motion of the index as depicted by the black line on the chart. This motion is quite a classic and the short-term uptrend which started in mid-December is just not sustainable. Or is it?
As mentioned previously, 7,700 is a key area and it stretches all the way down to at least 7,500. Let’s see how strong the 7,700-7,750 support is. We might find out very soon.
My view hasn’t changed since the chart hasn’t changed much and price action has not shown improvement: I still see a move toward the 7,200-7,500 area. Fibonacci users would also agree with me on this.