Take profits as much as you can
Posted by Book Eater
Prediction: A rally followed by a furious selloff today or tomorrow
(to understand, please see trader mike's blog, left hand side, giving DJIA charts.)
Market Recap and predictions for the day:
1.) PSEI showed a negative MACD while the PCOMP rose roughly 20 pts? This is a bearish divergence. Short term trend is nearing resistance. Take profits as much as you can. With political concerns heavily affecting Philippines, stay away.
2.)MEG is still at oversold levels and made a bullish candle eating up all its previous day's range. That is a positive signal. RSI still shows very oversold levels which is why a follow through buying to prop it up until 2.44 (short term resistance) is not unlikely seeing the huge volume bought yesterday mostly at the levels of 2.32 (closing price). One needs to be careful though. If the overall outlook of PSEI looks like a "take profits" day. Any gains in MEG will be temporary. Be sure to trade fast.