News / Philippine Stock Market

PSEi Outlook for Jul. 28 - Aug. 1 By Bonner Dytoc July 27, 2008

After all the weeks of being clobbered in the market, we managed to smile a little last week.

The PSEi has finally gone back to 2500 after a wild roller coaster ride since the start of the month. Despite the DJIA’s recent fall, there is some momentum pushing our index higher. Does this mean we’ve decoupled from the biggest stock market? For now, that could still be wishful thinking.

For the moment, I will consider the recent rise in the PSEi to be another rally. The critical point that we need to break would be the resistance line we saw since December 2007 which is 2600. Once we’ve broken that resistance area, and hopefully with good volume, we could breathe a little easier. But that doesn’t mean that everything will be smooth sailing from that point on. We still have to remember there are three moving averages waiting to act as resistance areas too.

As our fellow analyst Trader X has been recommending, stay liquid. But if you can find some daytrading opportunities, then go for it. But be quick to liquidate when you have to.