News / Philippine Stock Market

PSEi Outlook For June 30 - July 4, 2008 By Bonner Dytoc June 30, 2008

For those who were able to attend our Chart Analysis Forum last Tuesday, we made a forecast on probably scenarios for the PSEi.  For those who were unable to attend, let’s do a recap.

The index is still trending lower as shown in the chart.  It has already broken through various support areas. The first was the neckline of the double top which was at 2866.  The break of the neckline was pointing to a downside target of 2122.  But since we knew that this won’t travel in one straight line, we had to look for areas of support. The first area of support that we were looking at was 2582. That was recently broken a week or so back.  The next support area that we are looking at is now 2407.  If this doesn’t hold, and the chances of that happening are big with the way the other markets are performing, the next support that we are looking at would now be at 2175.  Please keep in mind that these supports are for our guidance only.

As we told our audience last Tuesday, there is still no sign of any reversal to the current trend. Therefore we should assume the downtrend will still continue.  If we want to have even an inkling of a break of the trend, the resistance line of the PSEi, now at 2690, should be broken.  At the very least, we hope the index would go sideways before it moves up.