The benchmark Philippine Stock Exchange Index is poised for more volatility in the coming days after ending last week almost unchanged at 7,990.20.
Juanis Barredo, COL Financial Group vice president and chief technical analyst, said investors can expect “more choppiness ahead” for this week.
“After rallying from 7,500 to 8,139, the index seems sapped and may have to undergo some reactions to support (7,900-7,800),” Barredo said.
He noted that the market saw some support amid expectations of further interest rates cuts, but he said a correction was also in the cards.
“This offered some rallies in property stocks but these recent hit overbought levels and now needed some corrections to fix such extendedness,” Barredo said.
He likewise cited technical signals in the US markets, whose “rally has shown some good enough size as well.”
In a research note from 2TradeAsia, said external issues will also be at play.
It noted that such declines could be temporary.
“While volatility would still be at play on uncertainties in the US-China trade talks, investors are likely to consider these ‘hiccups’ as opportunities to position,” 2TradeAsia noted.
It pegged the PSEi’s support level at 7,900 while resistance was seen at 8,100-8,150.