News / Philippine Stock Market

PSEi Outlook For June 16 - 20, 2008 By Bonner Dytoc June 16, 2008

Our market is losing steam and fast.  I guess that much is obvious even without looking at the chart.  The PSEi has hit a new 20 month low of 2510, almost breaking the 2500 psychological support level.

And things aren’t about to turn around just yet.  The index is accelerating downwards and as we mentioned before, we are still bearish.  Even with what looks like a bullish divergence on the MACD, the oscillator has been consolidating under the zero line and now the fast line is diverging below the slow line.

If the hits just keep on coming, how low are we going go?  Based on previous levels, if the 2500 level is going to be broken, the next support base should be at 2406.

If you are liquid, stay liquid.  There’s no rush to buy anything now.  What you consider cheap could become cheaper the next day.