After the Investment Grade rating of Fitch, the Philippine Stock Index (PSEI) succumbed to profit taking. Coupled with negative news abroad (dismal US and Europe economic data, North Korea Tantrum, "Nomura" Banks All Mahal, etc) and shortened trading this week due to "Araw ng Kagitingan", the Index lost about 112.45 points (1.64%). Looking at its chart, the PSEI may have bottomed out. It is currently resting within the area of its short term horizontal support (6720) after creating a possible handle of a Cup and Handle (C&H) pattern. Ideally, the Cup of the C&H pattern should have a more rounded bottom for the pattern to be valid. In this case, the Cup is more of a "V". Should the PSEI continue its downtrend, it will be creating a Double Top - a Bearish pattern.
Even with all these negative developments abroad, the Mokong is still Bullish with our market - the first Investment Grade rating is merely the tip of the iceberg.
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