PSEI - China's sentiment

PSEI continued its rally to close at 7,721.57, as it continue to climb back at 7,800 range. We can expect the index to inch a little higher to trade back at 7,800 if it can sustain the rally and break it's first resistance, failure to do so will prompt PSEI to trade sideways at 7,600-7,700 range.

PSEI rally can be attributed to China's expected GDP result of 6.7% which ease investors worry about the world 2nd largest economy (paired with increased inflation data last week), along with PRRD visits to china that gained a very optimistic view.

Moody's rating also added to PSEI's rally and the high chance of FED rate hike happening until December fueled its bullish trend.

The trend may continue tomorrow until Friday as investors are likely to cash out gain from the rally.


Side note: MACD just made it's golden cross, aroon indicator shows a change in trend, and net foreign volume shows net buying after two weeks of net selling.



Will update again on Friday on what to watch out next week.

Charts: Investagrams.com