Happy New Year! The PSEI closed up 0.64% on the first day of trading at 7,276! This follows the bounce from the support of 6,942 which brought the market on consecutive moves up since December 17, 2014.
What we are seeing now is the market moving on a range from 6,942 to 7,360. MACD is pointing to a change in direction moving up. However will this be enough to destroy the selling at 7,360?
What can we expect?
We may expect some selling at 7,360. If the market fails to go up around that area we may see a correction down to 7,200 levels or back to the strong support again at 6,942.
What if the resistance gets broken?
Then for the first time in more than 20 months, we may now have a chance to go beyond 7,400. Watch out for volume, it must be present approaching and during the breakout.
Should it breakout, the market must hold above 7,400 for everything to remain valid.
What happens if the market holds above 7,400?
Then we now have a shot at 7,600 and the road to 8,000 now officially begins.
As what I always say, I hope these charts serve as a reference point for your trades. That ultimately this would just be a guide on how you conduct you buying and selling but the main descision will come from your own analysis and conviction. May you have an amazing 2015 ahead, I hope this year would be your greatest trading year yet! God bless you and I hope to see Millions upon Millions of Filipinos trade the markets!
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