Chart of the day: Philippines pipped to the post
Surging stock markets in Asia last week saw both Indonesia and the Philippines’ main indices close at record highs. The Philippine Composite Index settled just under the record high at 8,406 yet, despite being somewhat overbought, we feel there are further rallies in store between now and year-end. This is because of the four consecutive weekly closes above 8,100 – the top of irregular right-angled triangle consolidation that has dominated for far too long. Note the neat channel that contained most of the rally from 2008’s low and how we began trading below it two years ago. Therefore, there is an element of “catch-up” involved and our next measured target is 9,950, with Bollinger bands supporting price action.
Nicole Elliott is a technical analyst