News / Philippine Stock Market

PSEi Outlook For Mar. 31 - Apr. 4, 2008 By Bonner Dytoc March 30, 2008

The past week was quite a relief from the usual slaughter we experienced for the past few months.  So I’m sure the question on everyone’s minds right now is, is the bear market over?  Hold your horses, it’s not over ‘til the fat lady sings.

In our case, it’s not over until the resistance around the 3450 area (and the resistance keeps getting lower the longer the price takes to get near it) has been broken convincingly.  For the short term, I’d like the index to break through 2991.18 or so to give me a little more confidence in the PSEi.

Overall, things are still bearish with the moving averages still hovering above the index.  Add to that, it’s only now that the 130MA is ready to cross below the 260MA, at which point it will confirm the bear market that we already are experiencing.  The MACD looks flat but it’s consolidating below the zero line.

Right now, there’s that glimmer of hope as many issues seem to have followed what the index did last week; rise from a V reversal and continue higher.  At least that’s for the short-term.  Let’s just remember, no break above the 3450 resistance, no happy days yet.