Philippine Stock Exchange Inc (PSE:PS) Gets SEC Approval for Short Selling

Philippine Stock Exchange Inc (PSE:PS) Gets SEC Approval for Short Selling

Philippine Stock Exchange Inc (PSE:PS) Gets SEC Approval for Short Selling

The Philippine Stock Exchange has secured approval from regulators to introduce short selling, giving investors a tool to hedge risk or boost profit.

“We are optimistic that this facility will lend support to our securities borrowing and lending program and help improve liquidity in our market,” the bourse’s President and CEO Ramon Monzon said in an emailed statement after the Securities and Exchange Commission gave it the go-ahead.

Short-selling is the practice of wagering against securities by selling borrowed assets to bet on a decline, hoping to buy them back later and pocket the price difference.

The SEC approval comes at a time when local stocks are under pressure from an exodus of foreign funds and concerns about the nation’s accelerating inflation and peso depreciation against the dollar. The Philippine Stock Exchange Index closed 0.5 percent lower at 7,063.20 on Friday, the seventh straight day of declines. On June 21, the index breached 7,246.90 level that marked a bear market.

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

The projected upper bound is: 197.05.

The projected lower bound is: 183.35.

The projected closing price is: 190.20.

Candlesticks

A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 0 white candles and 7 black candles for a net of 7 black candles. During the past 50 bars, there have been 4 white candles and 29 black candles for a net of 25 black candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 9.0361. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 9 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 17.83. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 14 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -201.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 17 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 2 period(s) ago.

Rex Takasugi – TD Profile

PHIL STK EXCH closed down -4.000 at 191.000. Volume was 55% below average (consolidating) and Bollinger Bands were 3% wider than normal.

Open High Low Close Volume___
195.000 198.000 190.000 191.000 4,800

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 201.80 212.84 231.36
Volatility: 18 21 19
Volume: 2,963 4,180 11,571

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

PHIL STK EXCH is currently 17.4% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect moderate flows of volume out of PSE.PS (mildly bearish). Our trend forecasting oscillators are currently bearish on PSE.PS and have had this outlook for the last 60 periods. Our momentum oscillator is currently indicating that PSE.PS is currently in an oversold condition.

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