The PSEi did its best to give all participants a chance to enjoy the recent runup.  Based on last Friday’s performance, that was the time for most to get out.

If you notice, I’ve placed a horizontal line on the chart since weeks back.  This would serve as another resistance when the index rallies.  True enough, 2490 served as a resistance.  The problem was how the index did in its intraday chart.  It’s bad enough that the index would close near the low.  It’s worse that it closed lower than the open.  This indicates that many sold many of their holdings on that day which prompted the PSEi to go lower than the open.

This could be temporary as the 65-day moving average has now crossed above the 260MA, giving it some bullishness.  However, the 130MA still needs to rise above the 260MA to make our sentiment extremely bullish.

Based on how the MACD is doing, expect more correction to come.  This doesn’t mean that this will be a prolonged downturn.  However, it’s best to be always prepared.

Recommendation: Sell
Resistance: 2490