The Philippine Stock Exchange Index (PSEi) registered a relatively significant Net Foreign Buying worth P6.24 billion last July 1, 2020. However, the foreign investors has resumed their daily Net Foreign Selling on Monday, July 6, 2020. By and large, foreign investors remain net sellers year-to-date.
The immediate support is near 5,950 while the immediate resistance is near 6,600. I see no formation of a bullish convergence between the MACD and the signal line. On the other hand, I see a bearish convergence between the +DMI and the -DMI. Even though the +DMI hovers the negative one, the conviction level to say that the +DMI is more likely to maintain its position above the -DMI is low due to the average direction index (ADX) that’s lower than 25 points.
There’s still no concern on the daily volume of the bellwether index since it consistently caps the day with a volume that’s higher than the 50% of its 10-day volume average.
Given all of these bearish signals, it’s more likely for the main index to move sideways but with a bearish bias.
I’d still recommend stock-picking over buying an entire index or mutual fund. Is diversification one of your concerns why you’re buying a basket of stocks? Who says you can’t diversify by stock-picking?
At Equilyst Analytics, we tell our clients which among the 30 blue-chip stocks have a confirmed buy signal. They may top up on blue-chips that have a confirmed buy signal. For the blue-chips that they’re yet to add in their portfolio, we advise our clients to calculate their reward-to-risk ratio first when a confirmed buy signal is issued to them. Calculating your reward-to-risk ratio is always that one extra process you need to undertake if you’re yet to enter on a new position in a stock that has a confirmed buy signal.
As of market closing on July 7, 2020, 1 out of 30 blue-chips got a confirmed buy signal.
Nonetheless, it’s best to finish watching (with comprehension) our online stock market course before you jump from one tab to another so you’ll understand our proprietary methodology. You will not understand our “language”, even if you’ve been trading or investing in the stock market for 100 years, unless you finish studying our stock market course first. This course is already included when you avail of our stock market consultancy service. Read the details of our stock market consultancy service to know more.
- Key Prices for PH Bluechip Stocks 30% Above 52-Week Low - June 4, 2024
- May 2024 Market Sentiment Rating of 30 PH Bluechip Stocks - June 3, 2024
- EquiTalks: ICT, BPI, AEV Updates – 5.29.2024 - May 29, 2024
