We saw the index last week dropped at 6642.27. are we still on the bullish side of the market? in my opinion the 6500 support should hold. what happened last week was a correction but if this will last for 2months or more than 2 months, then we can say that our market enters the bear territory.

ill give my chart for your reference

What are we going to do? maybe some people might wanna ask this question. sell your shares like EW MBT BDO PNB BPI and some blues which are overbought before it is too late. when we say overbought, it means that the RSI reached 70 or above. you may look at your chart indicators and choose RSI so that you can see a clear picture of what i am saying.

OR

You should always check your stock's support. a trader should see if he or she will still hold his/her stock after reaching the overbought level of the RSI. This is very important to all investors. patience is not applicable here. if the price reached its maximum, then you should sell.



let me share this to you

"The game taught me the game."  -JL


what a beautiful quote from Jesse Livermore.


enjoy trading guys.
Good luck!

Bear Market for the PSEI

Yesterday we had a red index and i am expecting this to continue until it hit 6k which is the initial support for the index.

Let us see what bear market is

Definition of 'Bear Market' A market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment to be self-sustaining. As investors anticipate losses in a bear market and selling continues, pessimism only grows. Although figures can vary, for many, a downturn of 20\% or more in multiple broad market indexes, such as the Dow Jones Industrial Average (DJIA) or Standard & Poor's 500 Index (S&P 500), over at least a two-month period, is considered an entry into a bear market.

Investopedia explains 'Bear Market' A bear market should not be confused with a correction, which is a short-term trend that has a duration of less than two months. While corrections are often a great place for a value investor to find an entry point, bear markets rarely provide great entry points, as timing the bottom is very difficult to do. Fighting back can be extremely dangerous because it is quite difficult for an investor to make stellar gains during a bear market unless he or she is a short seller.

It says here that it should not be confused with a correction, which is a short term trend that has a duration of LESS THAN TWO MONTHS. therefore, if the index continues to drop for two months or more than two months then we can say that we are in a bear market now.As i can see, the 6k support should hold. If not, we may see this index at 5800-5500