Philippine Stock Market Commentary for January 26, 2010
The DJIA’s 23.88 point increase was not a sufficient reason to establish a rally at this point despite indicators showing oversold levels. After a run-up at the start of trading, the Phisix ended at 2,957 below its open. The Phisix and the DJIA’s support levels at 2,900 and 10,000, respectively, will be tested in the following trading days. The rally that may ensue if the 2,900 support level holds will try to break the 3,100 peak that double-topped mid-January. If the 2,900 level support breaks, 2,800 will be the next support level as established in late September 2009. We maintain a HOLD at this point.