Seems like the local bourse’s consolidation range is pretty stable. This, after a week of relatively volatile trading didn’t cause any significant breakdowns or breakouts.

Indicators are all supportive of sustained sideways trading. MACD signal lines are stable on sell signs, while both RSI and DMIs are showing a slight buying bias.

Nonetheless, it looks like the PSEI’s support has finally migrated from the psychological 7k level to 7,100.00 — effectively placing the index on a sustainable week-long uptick.

Expect this level to be the new base for a bounceback should the index continue last Friday’s downtrend.

Technical Indicators:

  • MACD – Stable sell signs, but buyer-seller gap is starting to thin out
  • DMI – Consistent gap between buying and selling pressure, flat momentum
  • RSI – Decreasing buy signals

Recommendation

Buy when support holds.

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