Market Outlook

The 6,400 level proved to be a strong support as the PSEi bounced back from the said level last week.

Expect volatility to continue however, given debates on how further economic growth will be supported for the remainder this year.

While movements remain range-bound, expect volatility for most part of the week as

Eyes are set whether the market would be able to continue momentum build-up based on yesterday’s advance, as some might be inclined to utilize this strength to exit.

MACD indicates that there is still selling pressure for the market as MACD histograms

The index closed at 6,461, rebounding from earlier losses in the trading session which saw the index fall below 6,400.

After the market failed to break above the 200-day MA, the market retested and briefly traded below

The candlestick has been forming a doji formation indicating that there could be a bullish candlestick today.

The index traded lower in the daily timeframe, however on a longer timeframe, this appears to be on an upward trend.

The index appears to have hold from its previous support levels and has started to rebound.

The index closed slightly higher at 6,520.44 settling near 6,500.

The index closed at 6,510.67, down -1.25% and is performing below its 50-d MA.

The index continues to move in a range as prices fall back to 6,560.

Participants may be on wait-and-see mode, if Thursday’s trades would mimic previous session’s MOC-boost.

Sentiment might drift to Wall Street’s overnight weakness (DJIA -0.69%, Nasdaq Comp. -1.26%) as fund managers trail the progress of US debt ceiling negotiations.