The Philippine Stock Exchange Index (PSEi) closed on February 4, 2021 with a net foreign selling worth P471 million. The foreign fundies have been on a net foreign selling streak for 15 trading days already.
I don’t see yesterday’s green candlestick as quite impressive because the volume was only a little bit higher than the 50 percent of PSEi’s 10-day volume average. I would have had a more bullish conviction to say that the ascent of the PSEi is more likely to continue if yesterday’s volume soared higher than the 100 percent of the PSEi’s 10-day volume average.
PSEi must maintain its position above 6,670, confluent with the 23.60 percent retracement of the Up Fibonacci to reduce the chances of retesting a deeper support level at 6,260, confluent with the 38.20 percent retracement of the Up Fibonacci.
The resistance range is between 7,330 and 7,450.
There are two things I’d like emphasize:
- We need to see a relatively higher-than-usual net foreign buying for at least 3 consecutive trading days for us to say that PSEi is more likely to re-test the resistance range.
- It’s better to make an investment decision according to the presence or the lack of a confirmed buy signal on your individual stocks. If you’re one of our clients at Equilyst Analytics, I advise that you check the Investment Guide for Long-term Investors table. We update the status (whether there’s a confirmed buy signal or not, at what price range it is logical to buy when there’s a confirmed signal, etc.) of the 30 bluechip or index stocks twice a day so you won’t have to manually request an update for any of those 30 bluechip stocks. Nonetheless, you can manually ask for our latest analysis and recommendation for any of the 30 bluechip stocks in our Private Clients Forum if you need an answer earlier than our scheduled update on the table.
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