PSEI DAILY CHART
Owing to the previously discussed bullish divergence sell off exhaustion, index did indeed rally to 3050 based on green arrow prediction and hit resistance and corrected immediately after from there.
What should happen now, for 3300 to possibly materialize? For hopeful short term bulls, The ensuing correction should take us as far up above the recent low of 2773 (encircled in yellow) as possible, to make for a convincing higher low. This hoped for move is symbolized in blue arrow.
What should not happen, is marked in red arrow, or a new lower low, which is lower than 2773 (encircled in yellow). That will probably validate with impunity the strength of 3300, or perhaps remove it off the table altogether.
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