The bullishness of the PSEi continued when it broke the short term resistance line on Feb. 11.  Not only did we break the resistance at 2977, but we even tested the 65-day moving average at 3015…and then we came back to reality.

The index right now is caught between the 65 & 130MA, located at 2941.  It’s possible that the market will be consolidating for a while.  So we should expect things to be harder for us while this happens.

The MACD’s momentum looks like it will bring itself back above the zero line anytime soon.  That should be good news for the short term traders.  But knowing that it’s possible for us to be at the start of a consolidation, we should be quick in exiting any position after we have locked in our profits.

Recommendation: Buy cautiously
Resistance: 3015