Market’s slightly up today! Roughly 30 minutes into the trading day, the PSEi is up by barely .30%. After hitting a lot of selling pressure at the 6,204 level, the market dropped and reaffirmed that it is still in a downtrend. In downtrends sellers rule and their is more pessimism than optimist. If we would have broke out at 6,204 this would have released our market from the downtrend that started May 2013.
After failing to go up against the downtrend, we then dropped and broke another support level at 6,000. Which serves as a very strong support and also a psychological price range for investors. Breakdowns in stock prices causes stocks to go lower as it would he a price range with larger selling pressure. Then yesterday there wasn’t us much price movement both upward and downward which just shows widespread indecision among investors.
1. If buyers see this momentary downturn as a chance to buy stocks cheap stocks may rebound quickly the market may go up and rebound to 6,000. It would be good for our market to stay above 6,000 and that level.
2. If sellers prevail we may see the market drop to around 5742 – 5,874.
3. Should the market hit 5,742 and holds that range, it may be good to pickup shares at this range. At this point though, you may expect a lot of selling pressure happen at 6,000.
1. If you follow the trend, you may use the scenarios above as references on how you may position your buying.
2. This price movement does change any of our country’s fundamentals. Our fundamental story is amazing and we are poised to grow even higher. For investors use this time to accumulate while prices are lower.
The end goal is not money but rather money is a result of your trading and investing. It is a by product and not something we chase after. Hope this week’s update encouraged you to see where we are in the market!
Have a great day ahead!
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