The rally of the index proved to be nothing more than just a technical rebound after the benchmark found a bottom at 6,719. Then, it hit the ceiling towards 6,940.00 as you can see attached photo. This Friday, the benchmark is still hitting but failing to breach said resistance, down 83.40 points to 6,801.37 in the morning session. Fortunately, it seems the 6,719 is acting like interim support.
The index remains in a bearish region that selling pressure will persist and will likely bring the market closer to testing this support again. The best-case scenario here is that PSEi will simply traverse this new consolidation range as the selling volume and momentum dissipates. Worst case is that PSEi will test the price floor and it crumbles, prompting another selldown. Here the most and likely action here is a conservative course of action, HOLD near-term.
Take note always the Psychological resistance at any point.
ALWAYS keep yourself updated for any subsequent events which can have a material effect on the company’s share price, good or bad. Act accordingly to your best of interest.
Think of this. Behavioral Finance should always be part of one’s trading plan.
Stock selection should not be delimited to Technical Analysis or Fundamental Analysis alone.
It has to be always COMPLETE.
This review is still subject to your due diligence.
Always trade at your own risk and execute your strategy with due diligence.
Be prudent, limit your stock investment to the amount that you can only afford to lose ( yung makakatulog ka pag nag negative port mo)
The market will do what it is supposed to do regardless of different opinions.
Manage your risk and execute your strategy with diligence. The author accepts NO LIABILITY for any damages, losses or causes of any action arising from the use of this blog.
God bless your investment.
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