After hitting the resistance at 7,000, the PSEI has now dropped 4 days without 7,000 in sight. As of today, it now has currently broken the support level at 6,900.
What may happen now?
Because of this we may possibly see the PSEI to drop further as the market is still not oversold and some oscillators are pointing to some downward momentum.
How low can it go over the short term?
Looking at the support lines in the chart above, a possible area where the market can bounce is at 6,822. If it fails to bounce from that it may go to as low as 6,700 where significant buying at could cause the market to go up. If it goes lower than 6,700 I will update you where the next buying support ranges will be.
What will trigger the PSEI to bounce up next week?
Watch 6,900, if it goes back to that level we may see the PSEI range again from 6,900 to 7,000.
Is the market bearish over the mid to long term?
Not yet. All mid to long term moving averages are still poiting that the market is still bullish.
As always, there will always be volatility in the markets. Risk will always be there but our goal in the market is not to be scared of risks but rather to find ways on how we can manage them and still win and come out on top. Congratulations to those who have found their own winning strategy to win and trade the PSE . While for those that are still seaching for their own mix, continue learning and never stop trying. As what I always say, earnings are always a result of the strategies that we make. It is never the end goal but a by product by what we already know inside.
God bless you and have a great weekend ahead! My next week be your best trading week yet!
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*Pictures via google search
*charts vis chartnexus