After its strong move past 8,300 the PSEi saw itself hit our mid term target of 8,500. After staying at 8,500 during intra trade, the market slid and closed lower than 8,500. That moved positioned 8,500 as a new short term resistance for the PSEi.
With that, what’s in store for the market and how should you go about your trades in the next few weeks?
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In spite of the slowdown of the market in the past 3 days, the trend is still pretty much intact. The support at 8,300 is still holding and the market did not even try to drop close and test those levels. As long as the market stays above 8,300, expect the PSEi to try to attack and try to break past 8,500.
To balance everything out, should the PSEi fail to do break 8,500, expect that the market could just hover from 8,300 – 8,500 over the short term. However if 8,300 fails to hold, there is a possibility that it could retrace back down to 8,100 again.
Should the PSEi breakout 8,500 with conviction, the next target price for the market will be 8,800. From our current point of view, the market would really need a large amount of buying and volume to make the market stay above 8,500.
There’s a lot of talk about the market hitting 10,000. I really believe that if we break past 8,800 the PSEi now has a shot over the mid to long term to go and hit 10,000. It won’t happen overnight but the breakout from 8,800 will bring the PSEi to sniping distance of the much awaited PSEi 10,000!
Should that happen, we will be walking in exciting times! I just hope that this post reaches more Filipinos and it inspires more and Filipinos to invest in the stock market!
The trend is still up and all oscillators are still depicting a bullish move. There’s no sell signal yet in the market, there is no reversal signal too. So sit back, relax and enjoy the ride. It’s time for you to reap the benefits of you properly positioning in the stock.
For position traders who want to come in, please don’t chase market while it is high. Your goal as a position trader is to come in when the market is moving and reversing up. The best way to lose money is to chase the market high and lose your advantage of having a large upside.