#PSEi Update: Hanging on to the 200 Day MA
#PSEi Update: Hanging on to the 200 Day MA
The PSEi had a barrage of selling both yesterday and today. Volumes during the large downward movements were relatively decent.
The movement was triggered by the breakdown from the 8,100 level support last July 31, 2019 and confirmation of it that happened 3 trading days after.
The market is now oversold, price and momentum indicators are showing us that the market is already bearish with stronger downward momentum as compared to the three weeks leading to this sell down.
Three moving averages are already bearish with only the 200 day moving average protecting the market. Should it bounce from the 200 day MA (just because the market is oversold) it could have a shot to go back and challenge the new resistance again at 8,100. After all the breakdown from 8,100 all meant that the market went back to its previous trend.
On a more negative note, should the 200 day MA not hold its ground, the market could slide to the stronger support at the 7,470 / 7,500 level. If this levels could not hold, we could see the market drop from a sideways progression and we may see it breakdown even further. The next possible landing spot for the market would be at 7,260.
I'll keep you guys posted as this continues to unfold before our very eyes.
As long as you are investing money that's a surplus, you are exposing just the amount of risk that you can tolerate and you are following your plan you should be okay. If you follow your emotions, that's when you will lose.
News: I posted a more detailed explanation of this in my Youtube Channel for your reference. But it's most because of what's happening overseas and the whole trade war turned currency war between the US and China.
Post your questions below and I'll make a new video based on this during the week! I'll post some of them while in Hong Kong! I'm actually excited to be back for Stock Smarts Hong Kong this weekend! See you all there!
#StockSmarts #StockInvestingMadeEasy