News / Philippine Stock Market

PSEi Outlook For Oct. 6 - 10, 2008 By Bonner Dytoc October 05, 2008

It’s a good thing that the PSEi hasn’t been duplicating the volatility in the US market. If that were so, not only would you have a lot of people getting confused but you would also have a lot of losers cursing the market.

The bad news is that we’re still not yet out of the woods. The good news is that we’re doing much better than the other markets. One look at the chart of the PSEi tells you that we’re still bearish. However, there are certain areas that we should be looking out for.

The current level is being supported by the 65-day moving average so we’re looking at two levels that would act as our immediate resistances. The first would be the neckline of the double top we saw back in August-September. The neckline is situated at 2630. When that is surpassed, the 130MA is the next resistance area at 2675.

The MACD shows us that the index is currently rallying. Definitely there is some selling pressure on the market as we’re all reeling from the uncertainties brought about by the volatility in the US market. But like any other crisis, we will be able to weather this storm.