Last Friday, the PSEi shed a whopping 90.07 pts or -1.30% to end the week at 6,834.92. It reached an intra-day low of 6,745.85 before a last-minute buy-up towards closing led to the paring of some of its losses. Nonetheless, the index is still down more than -2% w/w. The pullback was widely expected across the market, since the local bourse broke the 7k resistance intra-day and even reached a peak of 7,064.24 at some point last week. Profit-taking ensued thereafter. In our previous Trade Ideas, we mentioned that the index may retest the 6,800 support and expect it to consolidate at these levels in the next few sessions. We reinforce this analysis.
Buy when support holds