{"id":321622,"date":"2023-02-16T11:26:43","date_gmt":"2023-02-16T03:26:43","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=321622"},"modified":"2023-02-16T11:51:51","modified_gmt":"2023-02-16T03:51:51","slug":"special-report-psei-support-seen-at-6800","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/special-report-psei-support-seen-at-6800\/","title":{"rendered":"PSEi’s long-term picture remains weak, support seen at 6,800"},"content":{"rendered":"\n

The Philippine Stock Exchange index (PSEi) has been in a short-term uptrend since bottoming in early October 2022. The current bullish run-up, though, which has all major moving averages trending up, is still considered a bear market rally. The longer-term and bigger picture trend of the PSEi remains to be weak.<\/p>\n\n\n\n

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Analysis and Recommendation<\/h2>\n\n\n\n

The sustainability of the current shorter term rally was tested and the PSEi broke a triple-layered support at around the 6,800 level. The latter was the support of the current uptrend channel and an old triple top resistance. Lastly, it is also the 50% Fibonacci retracement level from the December 19 low to the January 24 high.<\/p>\n\n\n\n

Given the confluence of support levels and with stochastic oscillators nearing oversold levels, the 6,800 level is considered as a relevant support. <\/p>\n\n\n\n

Recent candlestick formations were giving mixed signals as only 54% of the trading sessions developed into bullish light shaded candles. However, the PSEi showed a bias on the downside as it was touching the lower end of its Bollinger Bands.<\/p>\n\n\n\n

Providing a negative backdrop for the market recently is the hot US inflation report, which showed a spike in US consumer prices. US inflation soared to 0.5% month on month in January and pushes back the Fed’s date of achieving its terminal inflation rate of 2%. <\/p>\n\n\n\n

US Treasury yields moved higher with the 6-month U.S. Treasury above 5% for the first time since July 2007. If the PSEi fails to recover even as the oscillators are already oversold, we may see it pull back to a measured target of 6,533. The latter is also the 78.6% Fibonacci retracement.<\/p>\n\n\n\n

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This report is prepared by PinoyInvestor\u2019s partner broker below. Find out more about our partner brokers<\/a> and sign up to avail their complete trading brokerage services.<\/em><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Here\u2019s a commentary on an important issue or event affecting the stock market<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-321622","post","type-post","status-publish","format-standard","hentry","category-special-reports","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/321622","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=321622"}],"version-history":[{"count":2,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/321622\/revisions"}],"predecessor-version":[{"id":321639,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/321622\/revisions\/321639"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=321622"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=321622"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=321622"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}