Trading Signals

February 2, 2018
Ayala Land Inc.
Bloomberg: ALI PM / Reuters: ALI.PS

Charts Speak Louder than Words

 Analysis: ALI bounced from a strong support at PHP44.25 as it tries to reverse its downtrend.
The stock rose 2.5% yesterday.

 Trading Plan: Buy on a breakout on big volume or trade the range if it drops to its previous
lows. Keep stops tight, just to be safe. Resistance is at PHP47.50 while support levels are at
PHP44.25 and PHP42.95.
Minutes of the Morning Meeting
Prospect of higher interest rates may weigh on PH equities today, before the release of PH inflation
and BSP’s meeting next week. Investors will also await the release of tonight’s US’ jobs report. Next
supports are seen at 8,700 & 8,600. The Dow gave up a 150-point advance and eked out a gain in
the final minutes of trading, as the threat of higher rates from the Fed continued to rattle markets.

US JOBS DATA TONIGHT:

*Change in Nonfarm Payrolls: 180k for est. for Jan. & 148k prior.
*Unemployment Rate: 4.1% est. & prior.
*Avg. Hourly Earnings MoM: 0.2% est. & 0.3% prior.
*Avg. Hourly Earnings YoY: 2.6% est. & 2.5% prior.

FirstMetroSec research is available through Bloomberg.

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 Trading Signals

PSEi Technical Analysis ANALYSIS:

SUPPORT: 8,700-8,720 RESISTANCE: 9,100-9,190

 The PSEi continues to test its next support zone

at 8,700 to 8,720 (S1). Failure to rebound from
this level would lead the index to test its 38.2%
retracement level at 8,670 (S3), and psychologi-
cal 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 S1 may look to light-

en 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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