The Philippine Stock Exchange Index has been sluggish for the past week or two despite the strong finishes and price movements of most of its listed stocks due to the fact that TEL (PLDT), the Philippines top and leading telecommunications company, is on a downtrend. TEL has a huge influence on the stock market index.
Below is TEL's chart:
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TEL is bound to bounce for the following reasons:
1.) It's price is currently at its trend support.
2.) Major indicators MACD, RSI, and STS are all low (so low for that matter). Low or oversold indicators always bounce back up. Volume is good as well, stock is active.
3.) Despite the massive sell off, huge brokers such as ATR Kim Eng Securities, Thing-on Securities Ltd., SB Securities Inc., DBP-Daiwa Securities, Regina Capital, Papa Securities Inc., and First Orient Securities bought huge number of TEL shares.
Quotes that may fit TEL well:
"Sell when everybody is buying and buy when everybody is selling"
"Buy on fear, sell on greed"
The sell off could still be the effect of lowering of PLDT's credit rating by Moody's. So caveat.
Nevertheless, TEL is worth watching.
Target entry price: P2,550
Target sell price: P2,700 (5.88% upside minus commissions and fees)
Target cut loss point: P2,500 (psychological support)
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