BY FIRST METRO SECURITIES
|Opinion Issued on||Support||Resistance|
|Jan 12 2015||7300 / 7200||7500 / 7600|
The PSEi traded higher during all 5 sessions last week and closed above its resistance, and at a new record at 7,402.72.
The breakout, which was also supported by a cross of the MACD above the zero line, indicates that the index has reversed into an uptrend and could trade to a measured move target of 7,900.
However, a breather may still be due, after gaining for 10 straight sessions.
Psychological resistances may be placed near whole numbers such as 7,500 & 7,600.
Trades who are long, may hold on to positions and look to take profits on a pullback from its psychological resistances from 7,500 to 7,600.
Those looking to buy, on the other hand, may wait for a dip, followed by a successful test of support (via bounce in the form of a higher-low).