While the outlook of the Philippine Composite Index seems somewhat bleak (please see my post on the PCOMP here), the Philippine Mining & Oil sector or PMINI appears to be the only one that could turn north.
The PMINI had been the lone star for the Philippine stock index when it reached a high of 26,000 last August from just around 12,000 to start the year. However since marking the said high, the sector plunged sharply and is now trading just below 20,000. This slide, in my opinion was due since the index had just been moving north ever since. Having said that, it is quite possible that the PMINI could turn its fortunes to positive again.
As you can see from its weekly chart, the sector had fallen right smack at its long term uptrend line. While this uptrend support appears a bit shallow, this could still keep the whole sector afloat. Also, a bullish hammer candlestick pattern has formed following its steep decline. This pattern suggests a possible bullish turnaround in prices at least in the near term. Additionally, the hammer pattern was also followed by an inside bar candle formation which also indicates the same scenario. Moreover, the 50% Fibonacci retracement level appears to be holding it afloat as well. Given these positive technical signals that are present at the same time, it is quite possible that the sector could indeed turn north soon.
Let us see is this pans out true.
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