PHILIPPINES shares are expected to continue an uphill battle driven by the positive sentiment from the Greek bailout program.
“Attempts to rally near the 7,700 to 7,800 points will be monitored this week, as seasoned fund managers will reposition cash in markets with promising potentials,” said Jason Escartin, investment analyst at F. Yap Securities Inc.
For AB Capital Securities, the uptrend seems certain the benchmark PSEi has breached the major resistance at the 7,600 mark which signals the onset of an attempt to break the next major goal at the 8,000 level.
“For technicals, the resistance at 7,600 was broken on Thursday following bullish news from China and Greece. The immediate resistance is now at 7,670, the high of June 1,” AB Capital said.
“A breakout from the immediate resistance level will confirm the bullish reversal pattern with a technical price target of up to 8,000 points. Other technical indicators are bullish-neutral with the RSI (relative strength index) currently at 56 and Stochastics at 57. This implies that the current uptrend is not yet ‘overbought’ and may continue to extend up to next week,” it added.
Investors are going to keep an eye on the immediate resistance in the next couple of days, said Luis Limlingan, managing director at Regina Capital Development Corp.
“A successful breakout from 7,631 will trigger a ‘buy’ as the index is expected to trigger more rallies back to 7,700 level,” Limlingan said.
“On the other hand, we are placing another trigger below the 200-day moving average (at 7,470) because corrections to the monthly support are likely to happen if this moving average is broken. If this scenario happens, [investors]will shift to a range-trade strategy,” he added.
Last week, the PSEi carved a definite uptrend after the new bailout loan for Greece was announced.