After hitting a stone wall for 5 times since August 2014, the PSEI has failed to close higher than 7,400. This time it faces 3 red days of downward selling that threathens to bring the market lower.
Looking at the chart above, it shows that the PSEI has broken 2 moving averages. For those who follow technical analysis, this may bring the index even lower if it fails to bounce soon.
Here are some scenario’s that may happen in the market:
If the Market fails to stay above 7,200?
This would even validate the selling and it could drop the PSEI to 7,120 or a worst case scenario of 6,880 for the short to mid term.
If the Market stays above 7,200?
Then the market is up agian for another showdown with the resistance at 7,356! We may see the market inch a bit higher and try to bounce as investors may consider 7,200 as a good place to enter and buy stocks at relatively cheaper prices.
Will we hit 7,400?
That will depend if we successfully break and go beyond 7,356.
I hope these charts help you find a reference point in your trades and would help you know when is the best time to come in and out when it comes to your investments. My desire is to see you win in the stock market repeatedly over the long term and that you may find your own winning strategy that will make you profitable in the stock market! God bless you and have a great week ahead as you move forward towards financial freedom!
———————————————————————————————————————————
My 2nd book Stock Smarts: Winning Strategies is now out! Click the Link to Register and Order.
If you’d like to learn more how to invest in the stock market and learn how to make your money work hard for you. I’d like to invite you to our upcoming events
- December 13th Market Outlook and the Top 10 Stocks for 2015!
- January 31st Stock Smarts Bascis: Manila
- January 31st How to Find The Perfect Timing in Buying and Selling Stocks (afternoon)
- February 7th Stock Smarts Cebu: Technical Analysis
- February 12th Technical Analysis: Chart Patterns and Oscillators (Evening Session)
- February 26th Fundamental Analysis: How to pick good stocks and avoid bad ones (Evening Session)
For inquiries, registration, and payments email: stocksmartsconsulting@gmail.com
For inquiries, registration, and payments email: stocksmartsconsulting@gmail.com
*Charts via chartnexus
