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).