Here’s the inevitable pullback that we’ve all been anticipating! The local bourse declined by -0.62% yesterday to end the session at 6,992.43–a few points below the 7k level. This was after it hit an intra-day high of 7,064.24. Towards the end of the trading session, profit-taking led to increased selldown of several index heavyweights. Yesterday’s bearish engulfing candlestick points to a continuation of the correction. Indicators are still carrying some bullish prints, but there are hints of increasing selling pressure that will likely start to increase in the next few days. Chances of the index going back to 6,800.00–at least intra-day–are still pretty high. Nonetheless, in the mid-term, there is a looming golden cross forming that could be telling of an uptrend in the next few months.
Support: 6,800.00 / 6,630.00
Resistance: 7,000.00 / 7,160.00