Trading Signals

February 14, 2018

PLDT Inc.
Bloomberg: TEL PM / Reuters: TEL.PS

Charts Speak Louder than Words

 Analysis: MACD crossed below the signal line, confirming the short-term bearish trend for the
stock.
 Trading Plan: Trend followers are recommended to avoid the stock and wait for a proper con-
firmation of support and a trend reversal to indicate that the downtrend is losing steam.
Counter trend traders, on the other hand, may look to buy the stock on a re-test of to its psy-
chological Php1500.00 support for a rebound play. Resistance levels are at PHP 1,567.00 and

Minutes of the Morning Meeting

The PSEi rebounded back above the 8,500 level due to MOC buy ups, and may further test its gap
at 8,600 today, after U.S. stocks advanced overnight. Volume, however, will likely trade light as Lu-
nar new year celebrations for the Year of the Dog begin. Investors will also await the release of the
US CPI tonight. Meanwhile men in the Philippines will be driving inflation even higher by spending
on overpriced stuffed teddy bears, dark chocolates, and flowers, all in the name of love.

FirstMe-
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troSec research is available through Bloomberg. Just
 Trading Signals

PSEi Technical Analysis ANALYSIS:

SUPPORT: 8,440-8,500 RESISTANCE: 8,681-8,750

 The PSEi rebounded back above the 8,500 level,

continued to hold above its 61.8% retracement
at 8,440 (S2), and now looks to test its gap at
8,600 (R1).

 A pullback from R1 and higher resistance gap

from 8,680.59 (R1) to 8,746.86 (R2) in a lower-
high would solidify that the index has reversed
into a short term downtrend.

 MACD readings continue to confirm weakness,

while RSI readings have yet to reach oversold
levels.

TRADING PLAN:

 The market broke below our recommended stop

level at 8,670, indicating that it may reverse into
a short term downtrend.

 Look to lighten on strength near its new re-

sistances, and wait for a successful double test
of support before entering.

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