Stock Market, Stock Market Analysis
In-Depth Stock Market Index Analysis Diary #5: Essential Insights
The rally of the Stock Market index proved to be nothing more than just a technical rebound after the benchmark found a bottom at 6,719. Then, it hit the ceiling towards 6,940.00 as you can see attached photo. This Friday, the benchmark is still hitting but failing to breach said resistance, down 83.40 points to 6,801.37 in the morning session. Fortunately, it seems the 6,719 is acting like interim support.
The index remains in a bearish region that selling pressure will persist and will likely bring the market closer to testing this support again. The best-case scenario here is that PSEi will simply traverse this new consolidation range as the selling volume and momentum dissipates. Worst case is that PSEi will test the price floor and it crumbles, prompting another sell down. Here the most and likely action here is a conservative course of action, HOLD near-term.
Take note always the Psychological resistance at any point.
ALWAYS keep yourself updated for any subsequent events which can have a material effect on the company’s share price, good or bad. Act accordingly to your best of interest.
In times like these, staying informed and maintaining a cautious approach can be crucial. Monitoring psychological resistance levels and being prepared for potential market shifts are essential strategies for navigating uncertain market conditions. It’s also important to remain vigilant for any developments that could impact stock prices, making informed decisions based on the latest information available. By staying proactive and adaptable, investors can better position themselves to weather fluctuations in the market and seize opportunities as they arise.
Reminder:
Think of this. Behavioral Finance should always be part of one’s trading plan.
Stock selection should not be delimited to Technical Analysis or Fundamental Analysis alone. Understanding market sentiment and investor behavior, especially in relation to index movements, can provide invaluable insights. Index trends often reflect broader market psychology, making it essential to consider behavioral patterns alongside traditional analysis methods.
It has to be always COMPLETE.
This review is still subject to your due diligence.
Always trade at your own risk and execute your strategy with due diligence.
Be prudent, limit your stock investment to the amount that you can only afford to lose(yung makakatulog ka pag nag negative port mo). This principle is especially important when dealing with index funds or ETFs, as they inherently carry market risks. Diversifying your investments within various index funds can help spread out this risk, but it’s crucial to remember that even broad market indices can experience significant fluctuations.
The market will do what it is supposed to do regardless of different opinions.
Manage your risk and execute your strategy with diligence. The author accepts NO LIABILITY for any damages, losses or causes of any action arising from the use of this blog.
God bless your investment.
Disclaimer: Information on this site is for informational purposes only and should not be considered financial advice. We are not financial advisors, and our content should not be taken as professional recommendations. Consult a qualified financial advisor before making any decisions. We are not liable for any losses resulting from reliance on our content, the investment and index.
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A multi-award-winning blogger and advocate for OFWs and investment literacy; recipient of the Mass Media Advocacy Award, Philippine Expat Blog Award, and Most Outstanding Balikbayan Award. Her first book, The Global Filipino Bloggers OFW Edition, was launched at the Philippine Embassy in Kuwait. A certified Registered Financial Planner of the Philippines specializing in the Stock Market. A recognized author of the National Book Development Board of the Philippines. Co-founder of Teachers Specialist Organization in Kuwait (TSOK) and Filipino Bloggers in Kuwait (FBK). An international member of writing and poetry. Published more than 10 books. Read more: About DiaryNiGracia
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Peace and love to you.