The Philippines Stock Exchange Index (PSEI) broke below a short-term rising trendline and the 05/26/23 bottom at 6,496.47. This low is also close to a Fibonacci .618 retracement of the 03/16/23 to 05/08/23 rally.
The daily PSEI chart courtesy of Trading View updates the action.
The break of support implies a short – term move down to the 03/16/23 bottom in the 6,330 area. Momentum evidence supports this theory. Daily MACD is just below the “zero” line and daily RSI is only at 40% – the oversold zone begins at 30%.
There’s a good chance that in the next several weeks the PSEI could reach at least the October 2022 bottom.
Today 05/31/23, after the main stock trading session, The U.S. House of Representatives passed the debt ceiling increase. The next blog on 06/01/23 will examine the U.S. stock market reaction to this important legislative action.
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