PSEi has approached and continued to hold the 6.8k level as seen in yellow. Strong level for a resistance, now turning support. There seems to be a strong indication that it will be bullish for the week. It is critical to see how the price action will evolve in this area of value.
With PSEi's tendencies to mirror US indices, it may potentially also mirror the reaction in the upcoming CPI results on Tuesday. Additionally, PH interest rate decision is due on Thursday.
I think PSEi will give room for a swing higher and to break the 7,140 level. However, it may also give an indication of fake one. Or just simply wait for more concrete data and range between 6.6k to 6.8k
My stand in the short term is to see this swing move to 7k and see if it will continue the bullish channel. Let's see how this goes!
Comment
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The index went as low as 6.5k but still able to sustain the move. It seemed that there was profit taking happening last Friday. But given the strong close of the US indices last week, PSEI may follow suit and map this trade idea!
I wouldn't be surpised if it breaks your support easily. We may break down around 5.9k
PPTC
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@jetalictic, thanks for finding the time to comment here! Seemed to me that the trade idea is holding the line this week and respecting the area. I am cognizant of FOMC release this Thursday that may create a shatter across all markets -