PSEi Weekly Chart
PSEi (Chart: Daily Resistance: 2900 Support: 2510/ 2300/2034)
In an unexpected turn of events, with the successive oil price hikes, the index buckled from the bearish pressure and plunged 200 points in just 4 days. I initially thought that the index was starting to move sideways and consolidate, but the events last week proved that the market is still bearish territory. The plunge broke a very important trend line, which is the support line from 2003. Breaking this support line is definitely bad news, as it means the hopes of continuing the upward movement became less. As of current, the index has continued trending downward, trading within a small channel. The low of the index last week at 2510 could probably be a support level as it is the support line of the downward channel. If the index still breaks this support, it’s anyone’s guess for the next support level. One probable support is at 2300, which is the Weekly chart’s 260-MA, next one is the next previous low at 2034. A rally is possible this week as the RSI is at its lowest. If you have been range trading, this would be a good chance to get out if you were stuck from the plunge. There is still no reversal pattern in the charts, so the current trend is expected to continue.
PCOR (Chart :Daily Resistance: 6.50 Support: 5.80)
Let’s take a look at PCOR’s activity in the light of the recent successive price increases. Looking at PCOR’s chart, we can see that it is positively reacting to the recent events. Just as when the index moved lower, PCOR moved higher, even creating gaps on the price. As of current, we now have a run-away gap from last trading day’s activity. Another gap up is not impossible as there may still be room for this judging from the upward channel’s resistance line. It is recommended that any gains from the recent gap ups should be protected as it is highly likely that the top of this rally may be formed this coming week because RSI is near overbought. This chart is still consolidating as seen from the intertwining of the 3 MA lines, so trading strategy would be to range trade this stock. Resistance is currently at 6.50 which is a previous high.
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