Apparently the reported 7.3% GDP and 7.2% GNP of the Philippines didn't help. PHISIX continues to go down amidst the positive news. The series of bad news (Makati bus bombing, China's inflation rate at 3.3%, and the chaos at Egypt) have done more damage than the positive news of the Philippine economy.
The graph below shows that PHISIX has already broken its somewhat strong uptrend support at 4000.
Encircled is supposed to be PHISIX's uptrend support at 4000 which was broken early January. Several supports were pegged but to no avail, PHISIX continues to dive deep.
BDO projected that PHISIX might go down to as low as 3600 for the year. 3600 is a really deep dive but with the looks of it, there is a very strong chance.
Now what if PHISIX sinks down to 3600, is it a good thing or bad? It's good if you ask me. PHISIX being down means other stocks are down, their values are cheaper (the value of stocks brings PHISIX down in the first place). It cuts in all angles for everybody because:
[1] It gives the perfect entry to the stock market. Stocks are cheap hence more volume could be bought.
[2] It gives traders and investors an opportunity to cover their losses when PHISIX went down.
[3] It gives a better room for growth. The deeper the hole, the higher the climb. 3600 is deep and there's a long way to go up.
How far will PHISIX continue to go? Nobody knows. But as far as the market behavior is concerned, it will continue to go down. Now is not the right time to invest. Experienced traders and investors say that late February or the month of March is a very good time to invest or trade. It's wise to take such advise.
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