The Philippine Stock Exchange Index or ^PSEi, last Friday May 7, 2010, fell by 94 points to 3,073 and closed at 3,142 after the major sell-off by the Dow Jones the night before. Fortunately, the uptrend’s major support line was maintained (violet dotted line) as the index bounced from the 3,073 level and as the PSEi holds above the psychological support at 3,000, the uptrend remains more intact.
The current resistance line (green dotted line) is around 3,330 as seen in the chart. We may be seeing the PSEi’s value moving just within the resistance and support lines in the following weeks unless the European market worsens due to the the current financial crisis in Greece. If more drastic downswings are followed up by the major markets, the uptrend will most likely be taken out and the PSEi brought lower.