The PSEI hits another historic high today breaking its previous record yesterday! Yes! The market is still bullish and remains to be bullish until we see any signs of reversal.
Is the market overbought? Yes it is, does it always go down quickly at overbought levels? Sometimes it does correct and then it bounces back again, at times it continues to go up despite it being at overbought levels and at times it corrects stronger than normal as investors try to lock in profits.
Are we here to predict what’s going to happen in the market? Not really, I beleive no once can predict what’s going to happen in the market at a consistent basis as the market over the short term is highly dependent on the news and how investors react to the news. Should we be scared because the market is up and it has the possibility to go down? Not at all! Our job as investors is to study the data, check the charts and create strategic areas where you could buy and for majority of you strategic areas where you can take profit.
Your goal and your streategy must be followed at all times, now more than ever, specially as emotions are running high each time the market would move up and break historic highs.
Looking at the chart above, the PSEI has broke the 7,600 level. MACD still remains bullish, volume is strong and all moving avearges from short to long are all still bullish.
What should we watch out for?
Now that we are past the 7,500 price range, 7,600 is now the key range to watch out for. Watch whether the PSEI holds above that range and stays above it.
If the PSEI stays above 7,600, what’s next?
Well if does, 7,800 is next on the radar and it’s a happy start of the year for everyone!
But what if the PSEI drops below 7,600?
A possible drop would be at 7,500 which maybe a weak support but a support nonetheless. However if 7,500 does not hold also, we could the market go to 7,400 which is where the 20 day moving average is.
Again congratulations to everyone invested! It’s a great start for the year to everyone. I hope and pray that as you invest further you reach your dreams of financial freedom and that more and more people would invested because they see your lives are changing for the better. I beleive the Philippines can be great once more! And I believe it starts form all of us being faithful with what we have!
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*Charts via chart nexus