Investors in the local equities market should prepare for the stock market’s eventual run in 2024 following last year’s consolidation.
Juanis Barredo, Colfinancial.com chief technical analyst, said amid the ongoing rise in the Philippine Stock Exchange index (PSEi), investors and traders should be prepared to time their entry when the market corrects, especially since the bellwether index is just inches away from its resistance level of 6,700.
Barredo said the market could hit between 7,100 and 7,500 this year.
On Friday, the PSEi closed at 6,686.09, up 12.59 points from Thursday’s 6,673.50.
“The only thing we need to climb is one more obstacle at 6,700. And if we can clear that particular resistance point, you’ll probably see a bit more viable movement into the market,” said Barredo in a briefing with clients this month.
“Both the Philippines and the US are a bit stretched and could do some correction. And we should take this as an opportunity that will allow us to be able to jump back into the market and, and have a little bit of more upside, rather than where we are today – if you’re looking at where we are compared to a 7,100 or 7,500 target,” he added.
Barredo said the momentum of the market, may get derailed in the likelihood of a delayed rate cut in the US, which many pundits predict to start in May, the result of the US election, and the escalation of supply bottlenecks caused by the conflict in the Middle East and Eastern Europe.
“My advice is…to keep an eye on the recovery ball. Because I think this is where we’re headed, we’ve seen the worst, we’ve seen a higher note to the market that paints a very good picture already, and that there are clearly some strong trending issues that are positioning ourselves into the market. And you have to learn how to be able to prepare yourself to take advantage of these things, especially when corrections appear,” Barredo also said.
