News / Philippine Stock Market

PSEi Outlook For Aut. 4 - 8, 2008 By Bonner Dytoc August 03, 2008

There’s good news and there’s bad news. The good news is that the PSEi has broken the major resistance line last July 30 when it closed at 2583. The bad news is that there wasn’t any significant volume that accompanied the break when this happened. The following days of trading were also not that encouraging. Volume was lacking and it looked like people were selling at any sign of a rally.

But let’s not lose hope just yet. What the PSEi chart doesn’t show us is how it is performing against the DJIA. The local index has not been following the Dow’s every move. The MACD’s fast line has already crossed above the zero line showing us that the bulls might be ready to come charging in.

However, again, volume is really a major concern.

Recommendation: Be vigilant and take profits when you can. Market is still unstable.
Support: 2500
Resistance: 2620