News / Philippine Stock Market

PSEi Outlook For Sept. 15 - 19 By Bonner Dytoc September 15, 2008

Get ready for more! More consolidation, that is.

It’s quite apparent that the movement of the PSEi has been nothing but a sideways movement since the start of August. The 130-day moving average didn’t help much as a resistance level and the index has backed off from trying to breach beyond 2700. So the market is once again caught in a state of chaos. Who’s going to win, the bulls or the bears?

It’s still early to tell who will have the upper hand but based on what the chart tells us, our short-term support has already been broken last Wednesday. The MACD has also shown weakness while it’s still above the zero line. It’s readying itself for another correction.

Should this happen, we expect the PSEi to close the gap in early August, and find support at the 65-day moving average at 2575.