Tug-of-War between the Bulls and the Bears

The PSEi is definitely acting weird. When you look at the charts of the stocks for the past two months, you will either see a ranging pattern or a downtrending pattern. However, if you look closely, some stocks had been going down on small doses only on each day for the past few weeks. For example, take a look at the each black candlestick of AT and FGEN, and you will notice that their bodies are small, which means that the bulls are fighting hard to gain better ground. When you try drawing a trendline on stocks like these, you will either have a downtrend that has a narrow spread or you will be forced to consider the pattern to be ranging. What else I have noticed is that some stocks have been easing out and are closing at previous lows. This can be a good sign and means that stocks are building support at their current levels. Just take a look at FLI, MEG, and CEB, you can see that they are building support roughly at 1.18, 1.92, and 82.5 respectively. I guess what I'm trying to say is that our market can still rally for the coming days, but it would be safe to say that our market is a ranging market. Our economy is still healthy. In fact, when I went to a monthly broker's meeting, reports say that there is still a lot of room for growth in our economy. It's just not as cataclystic as the growth we experienced last year.