News / Philippine Stock Market

PSEi Outlook for Aug. 19 - 22 By Bonner Dytoc August 19, 2008

Welcome to the first of our two shortened weeks of trading. Let’s take a look at what happened to us the past week.

We started the week by gapping up due to DJIA’s strong showing overnight. We were testing 2800 at that point but we backed off from that level. The gap was almost closed but not quite. Since the gap remains open, we remain bullish, even for the short-term. The following days were forgettable days of trading where volatility was tight and uneventful.

Despite the lackluster week, the index remains bullish. The MACD lines are both above the zero line and in the bullish setting. The immediate resistance the PSEi has to hurdle is the 130-day moving average at tanglig2782. Once that has been surpassed, we can let the index look for its bearings while on its upward trend. The only time we will worry about the index again would be when it nears the 260-day moving average, which is currently at 3130.

Would now be a good time to pick up some stocks? Yes but be selective and don’t force the issue if it’s not feasible. May the force be with you.

Recommendation: Buy selectively, take profits
Support: 2700
Resistance: 2800