|Opinion Issued on||Support||Resistance|
|Dec 01 2014||7300 / 7200 / 7130 / 7000||7413|
Market expectations of more market placements may lead to continued sideways to downward pressure as companies take advantage of ample liquidity and appetite in the market.
Thinning volume may also be observed as we enter into the thick of the holiday season.
The PSEi is consolidating under the 7,413 major resistance and all-time high.
However, discounted market placements and thinning trading volumes within the holiday season can trigger a bias to test lower major support at 7,200 (30- and 60-day MA), a level that has proved resilient seen the October low. expect, next formidable support would be at 7,000.
We reiterate our BUY on DIP recommendation as we maintain our bullish outlook on the market.
We view weakness, particularly triggered by placement discounts, as pockets of opportunity.
We look forward to the index charting fresh highs as we head into seasonally positive end-year (December) and through the start of the year (January / February) when companies announce 4Q/FY2014 Earnings Results.