Hiya, did I catch your attention? Well, looks like it’s a “Yes” but I’m just kidding with the title guys! Anyway, on the canvas is my technical analysis update on the Philippine Stock Exchange Index (^PSEi) which already dropped more than 10% of its value this month of November alone and could continue to do so. During yesterday’s trading session, the ^PSEi broke down from the 4,000.00 psychological level and like I mentioned on my previous post (kindly check this), if that level gets broken, the next support it could find is 3,896.74. If 3,896.74 couldn’t hold on to the index from further dropping, the next marker could be the 2-year ascending channel‘s support. On the bull side, if the index bounces back up, the significant resistance it could encounter is 4,221.72. If that gets breached, the next resistance could be the 4,413.42 all-time high.
Fundamentally speaking, the US Consumer Index is at its highest in 5 months as it rose to 54.1 in November from 49.9 in October. However, as tensions between North Korea and South Korea continue to spark and fiscal matters in European countries could spread and worsen, market participants will remain fearful and stay on the sell side despite favorable economic data. Yet, it’s still better to watch out for these data as it leaves a big impact on the country’s economic progress. Since the US economy is a benchmark of the global markets, wherever the US market goes, the other markets would follow. Coming up is the data on the ADP Non-Farm Employment Change and ISM Manufacturing PMI of the US.
Personally, the bulls are still with the ^PSEi because the uptrend is still intact but if the trend breaks then that’s a different story.