After making a sustained rise since mid-March, the PSEi has hit the resistance at 2342.  At that level, we saw the index gap down in October from higher levels.

The 65-day moving average is above the 130MA at this point, but the index still lacks momentum to push itself higher.  It may now be above the 260MA. However, we could probably expect some correction this week, mirroring what we are also expecting in the US.

The MACD is above the zero line but somehow it’s losing momentum as it rises.

Should the PSEi rise above the resistance, we could probably see an upside target of 3010, within 6 months.  It’s not yet time to go all out, but there are selected issues that can be picked up at this point.

Recommendation: Buy selectively
Resistance: 2342