Thoughts and Non Thoughts

  The PSE index has been range trading post-pandemic at the 6400-6800 level. It needs to go on the rising trend line to make another breakthrough. 

It has to break through this short-term downward trend. 

 The index fell 4% on Friday. The support trend line didn’t hold. RSI at oversold levels. Next support level is at 5700.

 Will the 5-year support line hold? So far the PSEi has bounced off this trend line. 

 Bounce on the support line?

MERALCO Sold my shares when it failed to break above the resistance trendline (which used to be support trendline). MACD was peaking and RSI was at overbought level. Multi-year resistance around PhP400 -- it can resume its upward move if it can consolidate above this level. In the meantime, this is a stock I like buying on dips (below P300) and hold for 2 years of so. High dividends can be enjoyed while holding. TAYOR YMMV DYOR (chart from investagram)

 Using a 5-year chart, MACD and RSI. The PSE Index has been on a downward trend since its peak at 9,000;level. At the same time, it has a solid support at 6,000 and a rising trendline since the pandemic.  The two trend lines converged in June, and it seems to have made a move above the downtrend.  Will it break the downtrend and finally push through the strong resistance at 7,000 level after three attempts? If so, next resistance would be around 7,300, then 8,000. If not, it could continue ranging between 6,000 to 7,000. My bias? The rising trend line will hold. Catalysts are the impending rate cuts. Downsides are black swan events and geopolitical risks, which would reset this analysis. (Chart from Investagrams)