This is Jaycee De Guzman. I’m here to give you an update about the Philippine Stock Exchange and some pieces of advice on how to invest independently and trade tactically.
The Philippine Stock Exchange Index (PSEi) closed today, July 13, 2020, at 6,172.57, which is down by 0.4003 percent or 24.81 points. Foreign investors were in-charge of the 38 percent of today’s total turnover value of P4.41 billion.
The main bellwether index registered 69 gainers, 139 losers, and 34 unchanged issues. Today’s market breadth’s (winner-to-loser) ratio is 1:1.97, which is, still, relatively considered as a neutral stance.
The Mining and Oil sector led the gainers while the Financials sector led the losers. BDO, GMA7, and AC were the top 3 most active stocks according to total traded value, while GMA7, BDO, and ALI were the top traded stocks based on the number of trades.
The PSE Index’s immediate support remains near 5,950 while its immediate resistance is pegged near 6,590. Foreign investors registered a Net Foreign Selling worth P849 million today, which is their 6-day streak of Net Foreign Selling. Foreign investors are still net sellers year-to-date.
I see no pressing concern on the daily volume of the main index. It consistently registers a daily volume that’s higher than the 50 percent of the index’s 10-day volume average.
I see no formation of any bullish convergence or divergence on the MACD and DMI histograms. Therefore, the main index is still more likely to continue moving toward the southward direction.
Only 1 out of 30 blue-chip stocks has a confirmed buy signal based on our investment guide for long-term investors at Equilyst Analytics. The other 4 blue-chip stocks have a bullish 10SMACD but a bearish Momentum Power Indicator. The other 2 stocks have a bearish 10SMACD but a bullish Momentum Power Indicator. Finally, the remaining 23 index stocks have a bearish 10SMACD and a bearish Momentum Power Indicator.
At Equilyst Analytics, a stock must have a bullish 10SMACD and a bullish Momentum Power Indicator to have a confirmed buy signal. Once a confirmed buy signal is present, those who don’t have a position on that stock must calculate their reward-to-risk ratio first to check if they’re vying for a bigger potential reward than the potential risk. If you’re satisfied with the reward-to-risk ratio, with respect to the prevailing price’s distance to the immediate support and resistance levels, you may do a test-buy within the dominant range. On the other hand, you don’t have to calculate your reward-to-risk ratio if you already have a position on that stock that has a confirmed buy signal. You may top up within the dominant range right away.
At Equilyst Analytics, we also strongly recommend the use of a trailing stop to preserve your capital, protect your gains, and prevent unbearable losses. Bear in mind that no matter how data-driven the forecast is, the market can still be a contrarian. Your trailing stop will give you a stress-free trading and investing experience.
All of these terminologies, proprietary and non-proprietary, are explained in our online stock market course, which is 1 of the 5 inclusions of our stock market consultation service.
Visit https://www.equilyst.com/subscribe/ for more information on our stock market consultancy service. We will teach you how to invest independently and trade tactically for 1 year.
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