Will the Philippine Stock Market Index (PSEi) Make a Comeback?
Traders thought that the PSEi would finally break the 7000 levels until it tanked. Will it start to bounce back or is it just a short market correction? Here's what we know.
Since the start of 2023, the Philippine Stock Exchange Index (PSEi) was having an uptrend rally from 6586.01 to its recent peak at 7094.86. However, during the last half of January, PSEi started to tank by -3.80%—thus closing last February 15 at 6824.74. With its recent performance, many traders are in a precarious situation, or what seems to be a bull trap.
Defined as a "false signal—referring to a declining trend in a stock, index, or other security that reverses after a convincing rally and breaks a prior support level," a bull trap occurs when a trader buys a security that breaks out above a resistance level, which "traps" them in the trade. This means that traders who are caught in a bull trap may be forced on the wrong side of price action to exit positions with unexpected losses.
But given the PSEi's decrease last February, is there still hope for improvement this 2023? Here's what the numbers show.
What Really Happened
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