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.
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