After the PSEI registered a point shy at 7995 high while closing at the 7936 indicated a pause for the rally. With a round of Friday's block sales officially released at opening bell from a slight session price recovery, the PSEI continued a bearish direction that most technical traders can identify with ease as an 'evening star formation, which was followed by a bearish candle that indicated a decline was in the making that closed at the 7885 levels. This translated into a drop equivalent to a 110 point move from its registered high at 7995 and closing for the week ending July 14, 2017 slightly lower level on the opening price for the week at 7885.
Bearish as it may seem, the effects of profit taking and liquidation being that on a Friday is as normal as it can get. As for now, market sentiments have changed for the local bourse & market participants are weary. As these prices have dampened their spirits, so to speak which have caused a relentless follow through liquidation of earlier speculative long positions from retail investor / traders as signaled by its "Price and Volume Relationship". Although, the case may well be acceptable, the overall trend remains intact until such time it breaks a good support level.
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These three sectors have to make certain price adjustments as it has already traded above their premium levels over the benchmark as best described in our special report.
ReplyDeletePrices are well within its wide extended consolidation and shall continue to do so before a break can really occur
ReplyDeletePSEI resiliency remains as two (2) consecutive days of price recovery from last Friday's closing price. The gradual upward pace of price action is far better than a rapid price movement as this would easily die down even before the session closes. PSEI is back above the 7900 levels.
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