Philippine Stock Exchange Index – Daily Analysis

The Philippine Stock Exchange Index (PSEI) declined from February to June 2022.

The daily PSEI chart courtesy of Trading  View illustrates the action.

The bottom made on 06/23/22 is referred to as a confirmed bottom, meaning the price low was confirmed by momentum indicators. Note that the Stochastic, RSI, and MACD were at or very close to their lowest levels since the decline began in February 2022.

Typically, there will be bullish or double bullish momentum divergences at the termination point of bearish corrections.  There were no bullish momentum divergence at the 06/23/22 bottom, this implies  that the rally since the 06/23/22 bottom is  probably just a temporary bounce within a larger developing  down trend. 

The Fibonacci retracement levels at .382 and .618 of the PSEI  February to June decline could be stopping points for the post 06/23/22 rally.

Published by Mark Rivest

Independent investment advisor, trader, and writer. Articles have appeared on Technical Analysis of Stocks and Commodities , Traders.com Advantage, Futuresmag.com, and Finance Magnates.

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