It was a wild Friday for the Philippine Stock Exchange Composite Index (PCOMP) or the PSEi when market-on-close sell orders of heavyweights like PLDT (TEL) sent the index back in the red after trading in the positive zone for practically the entire session.
The PSEi was actually attempting to invalidate its recent breakdown by moving back above 4,200.00. As you can see from its chart, the index broke down from a triple top pattern during the start of last week. Notice that it tried to jump back above the neckline resistance for much of the week but was unable to do so completely. Given this, it is quite evident at least from a technical perspective that the PSEi would more likely dip further in the days to come. The good news, though, for those who are long is that its 200-day moving average (blue line) is not so far off. Check that when the market appeared on the verge of cracking back in February and March, this support kept it afloat. So even if the index dips some more, its 200-day moving average support, which is at around 4,070.00 to 4,100.00, could push it back on the bullish track.