Tyro Trader's Analysis - Aug 5

DOW was down by a whopping 500 points. US markets are now negative for the year. Our own PSE lost as much as 159 points before buyers started bidding up prices. In the end we closed the day with a very long tail with some stocks rebounding well off from their lows while some even closing at their highs. I'm currently neutral as to how I see the market. At one point, I am still bullish given our market's behaviour and the presence of still willing buyers. Notice that the intraday rebound actually coincides with a bounce from the 6month uptrend line. On the other hand, I am bearish because of overall global sentiments coupled with our PSE just coming off from its all time high. Appetite for equities could be decreasing resulting in less aggressive traders buying beyond the 4563 high if at all we still reach it.

I was already preparing my sell order (cutloss) for Aboitiz Equity Venture (AEV) when I noticed that volume was increasing and prices were being bid up. In the end, AEV went back within inside its asymmetrical triangle and closed at the triangles top end. Will we still see follow through buying by next week? I'll be assuming a defensive stance for now given how the markets have been behaving by tightening my stops for this.

In an almost similar fashion, Robinsons Land Corporation (RLC) bounced well off its opening price but unlike AEV, it was unable to close within its uptrend line. Notice that prices in the short term as well as volume are already on a decline. Given these factors, I'm now neutral and possibly looking into taking profits if at all a rally presents itself.

From a previous symmetrical triangle that I saw in Lopez Holding (LPZ), I'm now seeing a descending triangle which unfortunately is a bearish formation. Critical support price that needs to hold is P5.60 else, we would already see a continuation of its downtrend which the MACD and DMI are also indicating. There a small gap between 5.60 and 5.65 which could be covered next week. One could take advantage of this gap fill to sell into.

Good luck with your trades!

All charts courtesy of citiseconline.

Disclaimer: My above analysis are just that: analysis. I am in not in anyway soliciting for you to buy or sell any security issue. The only person accountable for the trades you make would be yourself and I cannot be held liable in any way for the same.