PSEi Outlook for Mar. 19 – 23, 2012
The Philippine Stock Exchange Index (PSEi) has been on a streak as it keeps making new all time highs. The index ended the week on a strong note as it closed at a new all time high of 5145.
The moving averages continue to trend upward together with the index. Should the index correct, we would expect that the 50-day moving average, currently at 4803, to act as our first area of support. The MACD has not yet moved together with the index as it still looks like it’s still in a consolidation phase. But we do expect that if the index would continue moving higher, the MACD would soon follow.
We mentioned the previous week that we expected the PSEi to breach the psychological level of 5000 and stay above it. Proof of that is already here as the index was able to close the week with a 114 point rise to the new all time high stated above. To sustain this, we expect index issues to lead the way to keep the PSEi rising.
Recommendation: Buy
Support: 4803
