PSEi Outlook for Mar. 26 – 30, 2012
The Philippine Stock Exchange Index (PSEi) is still maintaining its current uptrend by closing the week at 5042. Although this week ended lower than last week’s strong close, we are still in the middle of a steady climb.
The moving averages are moving in line with how the index has been trending. As of the last close, the 50-day moving average ended at 4852, which will also serve as our initial support. The other moving averages are also in the proper setup. As far as the moving averages are concerned, we have nothing to worry about. As for the MACD, it has gone sideways since January and hasn’t shown any strength or any weakness. A big move by the PSEi in either direction would probably push the MACD on a clearer path.
Unlike the DJIA which has already shown a clear bearish divergence with the MACD, the PSEi is not as bad. We continue to trend higher as there are a lot of issues that keep pushing the index higher. We would need to consider that since Holy Week is coming soon, we have to remember that the volume in the market dries up around this time to the week after Holy Week. It may be a good time to consider taking profits, at least for the meantime.
Recommendation: Buy
Support: 4852
