Philippine Stock Exchange Inc (PSE:PS) stocks fall to new lows

Philippine Stock Exchange Inc (PSE:PS) stocks fall to new lows

Philippines — Renewed fears of a possible trade war between the US and China again took its toll on the local financial market as foreign exchange and stock trading succumbed to new lows yesterday.

The peso extended its losing streak to six trading sessions, shedding another 21 centavos to close at a fresh 12-year low after piercing the 53 to $1 mark last week.

The local currency closed at 53.48 from 53.27 last Thursday. This was the lowest level for the peso in almost 12 years, or since closing at 53.55 on June 29, 2006.

The peso, the weakest performing currency in the region, has been falling since closing at 52.385 last June 6.

The benchmark Philippine Stock Exchange index (PSEi) also took a hit, falling to a 14-month low at 7,414.11, down 115.43 points or 1.53 percent. It is the lowest close  since April 3, 2017 when the index hit 7,341.65.

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 208.07.

The projected lower bound is: 194.91.

The projected closing price is: 201.49.

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 6 black candles for a net of 6 black candles. During the past 50 bars, there have been 4 white candles and 29 black candles for a net of 25 black candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 8.3334. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 5 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 28.63. 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 10 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 -187.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 13 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 buy 12 period(s) ago.

Rex Takasugi – TD Profile

PHIL STK EXCH closed down -2.600 at 202.200. Volume was 85% below average (consolidating) and Bollinger Bands were 42% narrower than normal.

Open High Low Close Volume___
204.800 204.800 202.200 202.200 1,680

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

Moving Averages: 10-period 50-period 200-period
Close: 206.22 215.81 232.16
Volatility: 8 20 18
Volume: 1,139 4,211 11,476

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 12.9% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of PSE.PS at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on PSE.PS and have had this outlook for the last 56 periods. Our momentum oscillator is currently indicating that PSE.PS is currently in an oversold condition. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.

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