Market closed by 16 points lower in today day's session after gaining a hefty 76 points yesterday. Anyway, I posted my view on the market today so there.
As I've suspected, most of my favorite stocks are moving sideways. AGI, MPI, MEG, and FLI moved sideways today after advancing around 5% in the past two sessions. The only one that advanced strongly today is RFM. It looks like it has awakened from its six-week slumber. I can still remember my trading plan for RFM!
MPI could possibly forming an ascending triangle formation though. A convincing breakout at 4 should warrant a buy.
Tuesday, October 5, 2010
Philippine Stock Exchange Index (PCOMP)
Ten-Year Daily Chart PSEi
The previous advance from 3600 level was succeeded by continuous 1% gain on a daily average, breaking the previous high at 3896, before meeting slight resistance at the psychological resistance at 4000 which caused choppy movements in the recent advances. The breaking of the 4000 psychological resistance by 3% suggests that the current uptrend is still good and it is simply resting before heading back up.
Current MACD reading is suggesting that the recent high is currently at the peak of the uptrend as it has relatively the same MACD reading as the previous high at 3896 which is also confirmed by the current DMI reading.
The fast MACD line has crossed below the slower MACD line suggesting that there would be a consolidation in the short to medium term. Chances of making a combination of correction-consolidation is relatively average, possibly a retest of the now current psychological support at 4000 before heading back up.
There is a Momentum-Rate of Change to Price divergence, further confirmed the short to medium term consolidation being suggested by the MACD and DMI readings.
The market is now trying to break into the old support line (current resistance).
Support (Fibonacci Retracements): 4055 - 3943 - 3864
Psychological Support: 4000 - 3896
The previous advance from 3600 level was succeeded by continuous 1% gain on a daily average, breaking the previous high at 3896, before meeting slight resistance at the psychological resistance at 4000 which caused choppy movements in the recent advances. The breaking of the 4000 psychological resistance by 3% suggests that the current uptrend is still good and it is simply resting before heading back up.
Current MACD reading is suggesting that the recent high is currently at the peak of the uptrend as it has relatively the same MACD reading as the previous high at 3896 which is also confirmed by the current DMI reading.
The fast MACD line has crossed below the slower MACD line suggesting that there would be a consolidation in the short to medium term. Chances of making a combination of correction-consolidation is relatively average, possibly a retest of the now current psychological support at 4000 before heading back up.
There is a Momentum-Rate of Change to Price divergence, further confirmed the short to medium term consolidation being suggested by the MACD and DMI readings.
The market is now trying to break into the old support line (current resistance).
Support (Fibonacci Retracements): 4055 - 3943 - 3864
Psychological Support: 4000 - 3896
