PSEI October 2016

The market continues to be hesitant and refuses to break above 7700.

The PSEI may continue to go down ahead of the US jobs data (US job growth slow). We may continue experience foreign capital outflow as investors expect a rate hike on December as Yellen said that Fed will likely raise increase rates once this year.

market-activity-20161007

Source: BookAKA

 

Chart observations:

October 7, 2016:

-Short term pattern: Pennant
-Long term pattern: Double Top
-Stochastic shows the choppy behavior of the market.
-ADX: Trading/Consolidation

psei-20161007

 

Update October 12, 2016:

Ouch! 7500 support broke down today.
Foreign selling continues although on thinner volume compared to the first half of September.

-Short term pattern: Pennant (breakdown)
-Stochastic: In oversold levels. Poised for bounce.
-ADX: Trading/Consolidation

psei-20161012

 

Update October 18, 2016:

The index bounced after reaching Stochastic oversold levels as we projected which now created a bullish divergence with the RSI. Has the market found its bottom already? Maybe not. Foreigns are still net sellers and volume is still lacking and this might be just a dead cat bounce. I’m still waiting for that overshooting market capitulation.

-Long term pattern: Double Top
-RSI: bullish divergence
-Stochastic: bounced from oversold levels
-ADX: trading/consolidation

psei-20161018

 

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