The Philippine Stock Index, or PSEi, just finished its second-straight decline to close at 4295.62, down by 1.2%. This decline is largely due to the TEL’s 1.5% decline, after plunging by 8% on last Friday’s trading. Still, the market appears to be taking some corrective declines, following its record-setting ascent in last week’s action. This correction also validates my suggestion last November 4 to take profits.
Now, this correction should be considered as healthy, and could probably send the index to as low as the 4,150 support levels. Also, unless the key 3,900 support level, one should not be alarmed if the index continues to move lower in the charts. Besides, it is better for the index to move slowly but surely, rather than spiking up strongly, only to come crashing back down again.
Moving on to PLDT’s decline, disappointing revenue numbers was the culprit in its last Friday’s plunge, with more foreign investors dumping TEL on the open market. But looking at the bright side, investors can now try to pick up TEL, as this stock is currently sitting with its 4-month support level at 2,400. But make sure the foreign’s are done, before placing TEL positions, as you know, its very hard to trade against them hehe.
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