PSEi Chart Update

Philippines Stock Exchange PSEi Index

Potential sign of exhaustion today after a gap down towards the major support area where a Bullish Hammer candlestick pattern formed up. If this bullish candlestick pattern morph into a Morning Star pattern, it can potentially signal the bottom and a reversal or consolidation may follow.

*Bullish divergence pattern also continues to unfold.

Trading Plan
- Please see the previous PSEi price action update as the medium to long term position trade potential remains the same:
https://psetrends.blogspot.com/2018/06/psei-price-action-update.html

PSEi Price Action Update

Philippines Stock Exchange PSEi Index

After 3 months of downtrend price action, PSEi started showing signs of Bullish Divergence pattern on many technical indicators (around first week of May). The breakout from its 3 months downtrend line and into the 4th month of another pullback (a sort of Dead-Cat-Bounce or DCB), Bullish Divergence pattern continues to unfold.
- Bullish Divergence pattern as price action gets closer to the major support area around 7400 is a potential sign that it's closer to the bottom if not the bottom yet.
- If the price action starts to consolidate around the major support area, it will likely confirm the Bullish Divergence pattern and signal the bottom.

*See previous PSEi chart analysis here:
https://psetrends.blogspot.com/search/label/PSEi

Trading Plan
- For medium to long term position trade, accumulation of key stocks (or index fund) near or below 7400 should give a good risk-to-reward ratio moving forward.

MWIDE Price Action Update

Megawide Construction Corporation

MWIDE is now trading again near the support line of its 8-month Upward Price Channel.
- immediate support area around 20.85.
- immediate resistance around 23.00.

Trading Plan
- Potential position trading opportunity again near the support areas. The lower the better approach (medium to long term trade still).

MWIDE price action analysis

Megawide Construction Corporation

MWIDE is currently trading at the support line of its 5-month Upward Price Channel.
- immediate support area around 17.70.
- immediate resistance around 19.70.

Trading Plan
- Potential position trading opportunity around the support areas. The lower the better approach (medium to long term trade)

Consensus of stocks under the PSEi index

Source: First Metro Securities
https://www.firstmetrosec.com.ph/

February 9, 2018