News / Philippine Stock Market

PSEi Outlook For Apr. 8 - 11, 2008 By Bonner Dytoc April 06, 2008

Let’s start the week with some good news!  The good news is that the short-term downtrend line has already been broken!  However, this doesn’t necessarily mean that it’s time for the index to be bullish.  Not just yet.

It’s too early to tell if things have reversed.  At the very least, the market could be in for some serious sideways movement.  Earlier, we noted that the index has risen above the 2987 resistance area, with a gap to boot.  However, the market just gave back the gain to retest the support line at 2983.

If and when the market moves higher, the first area of resistance it will meet is 3151 or wherever the 65-day moving average will be.  The only consolation I can see out of the whole picture would be that the MACD is showing us a bullish divergence.  Could this be our clue to a market rebound?  We’ll know soon enough.

For the moment, we repeat what we’ve said earlier; stay liquid.