Hi guys, the Philippine Stock Exchange Index (^PSEi) has finally corrected after an incredible run since September of this year. From around the 3,600.00 level, it rose all the way to an all-time high of 4,413.42 last November 5 (here’s my last post on it). However, seems like many traders have taken hefty profits after the remarkable run which caused the index to correct. At the same time, major indices from the global stock market such as the Dow Jones Industrial Average (^DJI) corrected as well. In less than 2 weeks, the PSEi nearly loss 10% of its value from the 4,413.42 all-time high to the current value of 4,069.31. Regardless, this is healthy for a bull market before it makes another run up.
The PSEi could further correct as it just started and if it does, the immediate support it could cling to is the 4,000.00 psychological level. If that gets broken, the next support could be the 3,896.74 price mark. If both of those fail from keeping the index from sliding lower, the 2-year ascending channel could be a strong support. On the opposite note, if the PSEi decides to trek up once again, the significant resistance it could encounter is the 4,413.42 all-time high. Once that gets breached, the next resistance could be the 4,500.00 psychological marker. Personally, I’m still bullish on this since the uptrend is still intact.