The market suffered again its morning sickness again, gaining 25 points on the opening before losing ground to profit takers and AFP pulling funds(kidding), closing lower by 15 points at 3851. If the recent low at 3723 holds, the index might consolidate(better) for a while before reversing. If it does not, then downtrend is still not over.
Again, as one could expect during declines, leading gainers for today are mostly speculative third liners, led by PRC +16.36%, OPM +7.69, ABA +4.60%, MARC +4.50%, SINO +4.35% and T +4.10%.
The only blue chip with relative value turnover is MER, gaining 3.03% for today.
Index losers is led by AP -2.08%, BDO -1.54%, DMC -1.16% AC -0.89%, AGI-0.68%, and MBT-0.50%.
There was also a huge cross in HP at 2.50. Can this cross jumpstart price action in short term?
RFM also continued its gains from yesterday, gaining another 3.87% on relatively lower volume from yesterday. If it reaches 1.65, it might start coming back to life again. It has relatively high discount from its fair value and weekly chart looks relatively bullish.
AEV is now back to uptrend and just started its correction today after meeting its old resistance at 40. Buy on correction and/or buy on breakout. Weekly chart looks pretty good.
I can't say the same for AP though. 2.35% gain over the week vs AEV 5.41% in the same week. I also feel like its weekly chart still looks weak mainly because of its bearish candlestick pattern(falling method - continuation pattern). Still bearish with AP so I'm still keeping the hypothetical short position open.
NIKL declined by 1.72% today after being bought up by ASIASEC for the past 2 days. I think someone in BDO noticed this so I believe he's the one who put up the 1M shares or so on the closing(possibly challenging ASIASEC to buy it up again). Weekly chart is up but is now showing slight hesitation to move up.
MER looks like a buy on pull back if it reaches 250-266 before it starts to retrace. Will cover the hypothetical shorts if it does.
So there, those are basically the issues I am currently observing.
TEL looks ready for a reversal already as RSI has already flattened out. Daily RSI is also at the lowest level in 10 years. However, Weekly RSI has yet to drop below mixing the signals. Despite of the mixed signals, I am inclined to believe that its more biased towards moving up so risk is now minimal. Shares are now cheaper for dividend play plus a potential upside of 13% if it does reverse. However, TEL moves relatively slow so it is not recommended for trading.
New hypothetical position in JFC.
