News / Philippine Stock Market

PSEi Outlook For June 2 - 6, 2008 By Bonner Dytoc May 31, 2008

Bad news: the PSEi has tried to break through the resistance line at the 2800-2900 level but failed.

Good news: we are off the lows of 2700 achieved in early May.  There is also a bullish divergence being formed in the MACD.

Overall, I think we just need to give it some time before we can see the market climbing back to 3000 and beyond.  Once the resistance area around 2830 has been broken, the next level that would concern us is 2900 as that is where the 65-day moving average is situated right now.  Once we surpass that, the next problem would be 3150.  But let’s take it one level at a time.

I think the market has already found its bottom and rebounded off that level.  Right now, it’s still consolidating but the pattern is not yet clear.

Start loading up on those index issues.  Just don’t go in with full positions just yet.