" Indeed, the equivalent of a two day move confirmed today as a 'melt-up' have resulted to a bigger market sell off from the initial signal made from the last minute decline on Tuesday's trading." With the PSEI drifting to 8497 mark from a recent high at 8586. The PSEI opening price higher gave the market ample time to consider their move before it drop to a week's low at 8332 before climbing back up for a relief recovery ending the day at 8431.73.
PSEI Price Action Oct 27, 2017 - after the fact
The PSEI continued its decline as institutional were in fact, taking advantage of the market sell-off in search of bargain hunting as prices continued to go back from their starting point. The registered low for the PSEI as of Friday's session low was marked at 8209 slightly above the equivalent breakout price levels of 8160/80 range. But the closing price is as important especially when the PSEI closes the month below this level which mean an exhaustion have been made from the 8586 high would serve as such for now.
NOTE: This is what ten days does that could make a huge difference in trading & investing
This only proves that POST 'Melt Up' which occurred last Oct 17, 2017 was true as validated today as daily depreciating transaction volumes continues to drop heading towards the closing week. Again, the irony is that other analyst traders surveyed continue to state that the corrective move from 8586 down to 8200 equal to a 376.85 point drop represents profit taking. However, what investors and traders alike need to understand is the daily intra-day volatility that comes with the decline really gave the market an average price range of over 200 points HI/LO over a month and half (1 1/2 months since September).
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Market & Price Call Signals Investors / Traders Euphoria Creates a Melt-Up! Dated: Oct 17, 2017
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Market & Price Call Signals Investors / Traders Euphoria Creates a Melt-Up! Dated: Oct 17, 2017
It is vital to identify and anticipate what the market does. And 'Price Action' analysis sets its best foot forward with signals not commonly seen on technical nor fundamental analysis. Understanding market behavior in live action is totally different on static charts and when a probable 'melt up' occurs in the market.
ReplyDeleteAfter Friday's closing recovery and non-trading holiday period, the expected Tuesday rally towards the 8543 session high have been supported by HOLDINGS and FINANCIALS. Even news agencies covering the am session were baffled as the rally made head winds an hour after opening bell.
ReplyDeleteMeanwhile, most analyst surveyed have called a reluctant market correction to continue and likewise were surprised the opposite market direction occurred. And now they again have changed their tune. Ironic how markets can sway sentiments at unexpected price direction against most market calls.
The late PSEI closing price level marked at 8516 affected other stock components outside of the PSEI composite being left behind which were unaffected by the rally. Investors need to be really aware of the pm intervention moves that can be detrimental for some retail investors position and traders at the mercy of such moves from institutional foreign and major players in the exchange.