Trading Signals

February 1, 2018
JG Summit Holdings, Inc.
Bloomberg: JGS PM / Reuters: JGS.PS

Charts Speak Louder than Words

 Analysis: The stock now looks to re-test its short term support at Php76.00. Note that failure
to hold above S1 would lead to a test of its lower support at Php 71.80 to Php72.00.

 Trading Plan: Watch support at PHP76.00. Sell/avoid on a breakdown or buy on a bounce to

trade the range. Resistance levels are at PHP 80.50-81.00 and PHP84.00.

Minutes of the Morning Meeting

Expect the PSEi to take a breather from its 2-day selloff, as bargain hunters look to step in at the mar-
ket’s next support zone at 8,750 to 8,770. Earnings releases will ramp up this Feb. (starting w/ MBT),
which should provide additional leads for the market. US stocks managed to hold onto late gains, af-
ter the Fed statement expressed more confidence that inflation will rise to its 2% target.

PH FY17 RESULTS:
*Feb 1 - MBT
*Feb 6 - GLO
US ECO DATA:
*ADP Employment Change: 234k for Jan. (vs. 190k est. & 250k prior).
FED MEETING:
*Benchmark rate range unchanged, as expected, to 1.25%-1.50%.
*The Fed thinks inflation should stabilize around its 2% target this year.
*The Fed removed references to hurricane-related disruptions and rebuilding efforts.
*Traders expect the next rate hike in March—the first meeting w/ Powell as Chairman.

FirstMetroSec research is available through Bloomberg.

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 Trading Signals

PSEi Technical Analysis ANALYSIS:

SUPPORT: 8,750-8,900 RESISTANCE: 9,100-9,190

 The PSEi closed below 8,900 (S1), and stands

just at the tip of its next lower support zone at
8,750 to 8,770 (S2).

 Failure to rebound from this level would lead the

index to test its 38.2% retracement level at
8,670 (S3), and psychological 8,600 support.

 MACD readings have also given a signal to take

profits, after the MACD line crossed below the
signal line.

TRADING PLAN:

 Those who bought close to 8,750 may look to

lighten on positions if its previous support at
8,900 becomes a new resistance. Keep stops on
a break below 8,670 to be safe.

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