PSEi opened at 4,314.85 and closed at 4,321.73 (+10.71 points, or +0.25% from yesterday). Both were higher than yesterday’s opening and closing levels, suggesting yesterday’s candle chart pattern was not a valid “hanging man” (the theory being, buyers from yesterday are not “ipit” after today).
Today’s candle chart pattern was a potential shooting star, almost a gravestone doji if not for the small white body. Unlike in most days of the recent decline, the intraday rally could not be sustained. This is potentially bearish in the short term, but we’ll have to see the market action on Monday for confirmation.
What does not require confirmation at the moment is that the market remains indecisive. The long lower shadow yesterday and long upper shadow today indicate a wide variety of trading opinions are at work in the current market. The small white bodies of yesterday and today on PSEi’s daily candle charts are further evidence of intraday indecision.
Hopefully, some long white or black candles next week will help clarify overall market sentiment. That would make trading decisions much easier.
Looking closely at individual stocks, most are off their lows, but have still not fully healed from this month’s massive declines. LC (+7.35%) is a notable exception as it is pushing new highs.
In general, the local equities market is still an Avoid, in my opinion. But LC will be given some thought over the weekend.
Happy weekend, Traders!