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
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
The Philippine Stock Exchange Index (PSEi) has been practically following what the DJIA has been doing with a psychological resistance; which is it has been trying to get past that level but something keeps putting it back.
The 50 & 100-day moving averages are now racing towards the index and they are now confirming the bullishness in our trend. The 50MA will now serve as our immediate support at 4743. The MACD continues to drift sideways while slowly going down. It probably only means that the PSEi is just passing through some correction phase before deciding on which trend to take.
Given that we’ve been flirting with the 5000 level for some time, we expect that this area will be breached soon again and hopefully it will stay above that level. The only way for that to happen would be for the index issues to start appreciating also so it’s time to hunt for bargains.
Recommendation: Buy
Support: 4743
