|
Page 1 of 2 PSE / General
A prosperous 2008 to everyone! While the start of the year seems gloomy, let’s not be discouraged just yet. We have to remember that our market is still caught inside a consolidation area. Therefore, the market is not as clear as we would like it to be.
In the meantime, what can we expect from the PSEi this year? For that, we need to take a look at the charts of the different sectors to give us an idea. In a nutshell, here is what I see:
- All Shares Index – there is a sideways movement that’s caught in between the moving averages with a little bit of bearishness as indicated by the MACD.
- Financial Sector – also sideways movement with bearish sentiment as prices are below the moving averages. The MACD is also oscillating below the zero line.
- Holdings Sector – again, sideways movement with a downward bias. Prices are below the moving averages and the MACD is below the zero line.
- Industrial Sector – Sideways movement still since August with a tinge of bearishness.
Property Sector – Bearish sentiment with MACD continuing downward movement. - Services Sector – Consolidating in a rectangle since October.
The only sector I see that shows some promise may be what has been the favorite sector of many since the latter part of 2007: the Mining-Oil sector. This sector has definitely been bullish with certain issues pushing its index higher. Obviously, mining issues are reacting to the higher price of gold, and oil issues reacting to the higher price of oil.
Currently, this sector is caught in a symmetrical triangle. Since the pattern is neutral, we can only confirm that it is bullish when it breaks out of the consolidation. For the moment, the resistance for this sector is at 8746, and support is at 8059. If it breaks out, we see an upside target of 10,162 for the sector. Should it weaken and breakdown, the downside target would be at 6644. But there are certain support areas that it will have surpass. The 65-day moving average is currently at 8170, and it is serving as the first support. The 130-day moving average is at 7188, and it will serve as the third support. Let’s not forget that the support of the triangle is the second support. The MACD is also bullish, as it has been oscillating above the zero line since October.
Go to page 2
<< Start < Prev 1 2 Next > End >>
|
