News / Philippine Stock Market

PSEi Outlook For Feb. 4 - 8, 2008 By Bonner Dytoc February 03, 2008

I think last week was a good week for the PSE.  Despite all the uncertainties that have befallen our market due to outside factors, the index has managed to recover from the sudden drop when it broke the channel.  However, it’s not yet out of the woods.

As we see in the chart, the index may have breached the immediate support at 3180 but it immediately made a reversal and has now risen to retest the support of the channel.  However, note that it has not closed inside the channel yet.

Can we say that this may be a sign of good things to come?  Not yet.  Not only has the index NOT consolidated after the shakeup but according to the MACD, what this looks like is a rally.

Until the index shows us a clearer picture, this corner can only suggest everyone to stay liquid, or sell on rally.