The Philippine Stock Exchange Index (PSEi) has reached a new all time high before ending the week on a pullback.  The index was able to break through 4800 to create a new high at 4822.  What followed was probably a case of two steps forward, 1 step back as the PSEi ended the week at 4758.

Despite the volatile pullback, the current 6 month uptrend is still intact as it is pulling away from the moving averages.  At the same time, the MACD lines are also tracking the uptrend while it oscillates upward.  Overall, we still see the bullishness in the market.

Seeing that this is just the start of something big, we shouldn’t let numerous opportunities pass us by when there are many stocks getting ripe for the picking.  We just need to choose those that fit our style.

Recommendation: Buy
Support: 4680

The Philippine Stock Exchange Index (PSEi) is now range trading between 4580 & 4750.  This should be good for us as this could mean that it could settle at these levels first before it climbs to higher levels.

The index is way above the moving averages that we already sense the uptrend in effect even before the averages have a chance to set up to the bullish positions.  The MACD on the other hand, has been tracking the trend, which it has already erased the bearish divergence we saw before.  This now gives us more confidence in the trend of the PSEi as we continue to seek higher levels.

Clearly, this is now a good setup for us to start accumulating selected issues that can be good for the long haul, especially those which will affect the index.  It’s time for us to search for our jackpots!

Recommendation: Buy
Support: 4563

The Philippine Stock Exchange Index (PSEi) isn’t finished in making history as we ended the week at a new all time high level of 4747!  Things are definitely getting much better.

The moving averages will soon be in the bullish setup as the index continues rising.  The MACD also continues going higher as the record breaking run is still unfolding.  Compared to other global indices, we definitely look much more attractive by now.

As the PSEi is still making a good case for attracting the foreigners, what we see in the chart is that we have now redrawn our lines and now view that the index has broken out of a trading range.  The resistance of 4666 was already broken last week.  Should this run continue, then we just may see the index reaching a new high when it hits our target of 5413.

Recommendation: Buy
Support: 4670

The Philippine Stock Exchange Index (PSEi) has achieved a new all time high of 4663!  And then it slumped from there.  We noticed that as the index was rallying to new heights, it backed off at 4591 initially because it hit the resistance of the long term trendline that we drew since March 2009.  This was immediately surpassed the following days as the market was pushed much higher on the massive buying of index issues.

As the PSEi continues to pull away from the moving averages, they are slowly establishing themselves to the bullish setup to confirm the current run.  The MACD on the other hand, has already surpassed the initial bearish divergence we saw since September 2010, thereby eliminating the bearish sentiment.  On both ends, bullishness prevails in the market.

The PSEi should continue going higher to solidify the renewed bullish sentiment existing at this moment.  In fact, it should rise by around 400 more points to authenticate the bull market that we are seeing.  In case, you are still liquid at this moment, bargains await you.

Recommendation: Buy
Support: 4400

The Philippine Stock Exchange Index (PSEi) outdid itself this week as it raced to come near the all time high of 4563.  This is definitely a good sign as it already negates the initial bearish pattern we thought was going to take place.

Much like the DJIA, the index has been trading much higher than the moving averages to give us some upward momentum.  The moving averages have yet to reestablish the bullish setup but that could happen in the next few trading days.  The MACD has also found some newfound momentum but it needs to rise to a level higher than the high it set in April 2010 to get rid of the bearish divergence.

Because the PSEi has found some renewed interest, this may be a good opportunity for us to look for bargains as many of the other stocks will take their cue from the index issues.  Happy hunting!

Recommendation: Buy
Support: 4400

The Philippine Stock Exchange Index (PSEi) is still range trading as it keeps itself afloat.  However, it is not getting any better.

The index has managed to keep itself above the moving averages since November.  However, it is not improving since the PSEi hasn’t been making higher highs.  The MACD is also showing consolidation but the bearish divergence has not yet been negated.  We have already warned about this for some time.  Even if there are certain stocks to consider, we have to be careful in our trades as the index is not advancing.

The PSEi has retested recent highs made in October but it is not able to get past that area.  As such, it is possible that a double top has been made that would cause the index to fall should the support at 4211 be broken.  Be diligent in the coming new year and be alert when the bear market comes.

Recommendation: Take profits
Support: 4288

The Philippine Stock Exchange Index (PSEi) has some good news and some bad news.  First, the good news.  We are now making newer highs for the past quarter.  The bad news is that this still doesn’t make it any better than what we saw before on the bigger picture.  The index still continues to form what we perceive to be the right shoulder of the head & shoulders pattern.

The moving averages are now setup in the bullish mode to support the upward movement of the index, even if it’s just momentary.  The MACD still shows us a bearish divergence since September 2010 and this is what could tip us off that something bad is coming soon.  We hope that doesn’t happen but we always have to be prepared for any eventuality.

Again, as we’ve been advising for many weeks now, don’t think twice about taking your profits as market conditions haven’t been improving yet.  It’s better to be safe than sorry.

Recommendation: Take profits
Support: 4270

Title: Basic Technical Analysis seminar
Location: Sun Plaza, Mandaluyong
Description: Session 5
Start Time: 09:00
Date: 2012-01-15

Title: Basic Technical Analysis seminar
Location: Sun Plaza, Mandaluyong
Description: Session 2, 3, & 4
Start Time: 09:00
Date: 2012-01-14

Title: Basic Technical Analysis seminar
Location: Sun Plaza, Mandaluyong
Description: Day 1
Start Time: 18:30
Date: 2012-01-13