Chart Overview:
The monthly chart of the PSEi Index (Philippines Stock Exchange Index) presents a crucial technical setup, reflecting long-term historical price action, key support/resistance levels, and potential future movements.
Key Observations:
Current Price & Trend:
The index is currently trading at 6,180.72, experiencing a sharp decline of -5.33%.
Price is below a key resistance level of 6,695.81, indicating a bearish phase.
Major Support Levels:
4,039.15: A significant long-term support level.
439.53: An extreme historical low (unlikely to be revisited).
Major Resistance Levels:
9,078.37: A key breakout level for a bullish reversal.
13,285.55: A major resistance from previous highs.
20,069.49: Long-term upside target in case of a bullish breakout.
Potential Scenarios:
Bullish Case:
If the price reclaims 9,078.37, a rally towards 13,285.55 and eventually 20,069.49 could unfold.
A breakout above 13,285.55 would signal a strong bull market.
Bearish Case:
If the index loses support at 6,180.72, it could decline towards 4,039.15.
Further downside could expose the market to a deep correction.
Technical Indicators & Sentiment:
The market is currently consolidating near historical support.
If buyers step in, a strong upward reversal is possible.
Failure to hold current levels may result in further downside.
Conclusion:
The PSEi Index is at a critical juncture. A breakout above 9,078.37 could trigger a strong uptrend, while a breakdown below 6,180.72 increases the probability of testing lower support levels. Traders should watch for volume confirmation and price action near key levels before making decisions.