The past week has been relatively good for the PSEi.  Not only has the index been trading off the lows of February but is now on its highest level since.

The PSEi has been able to prop itself up above the support of 2977 since last week and we saw that the 65-day moving average, now at 3013, would serve as a resistance for the index.  But as of now, the 65MA is already acting as a support when the index ended above it at 3043.

The MACD fast line is already above the zero line so we’ve become a bit bullish on the index again.  So definitely, there is some momentum for the PSEi to go higher.

The only problem I have with all of this is the lack of significant volume as the market moved higher.  Either the same players held back and allowed the traders to do their thing, or there just was no interest from new players to come in.  In order for the PSEi to sustain its move, there should be an increase in volume.  That would definitely be a convincing move.  However, with the current scenario, I’m keeping myself cautious about this.  If I have anything that has some profit, I’ll sell on a rally.

The only time I’ll probably be convinced that we’ve resumed our bull run is when the recent high of 3133 is taken out.  But until such time, play it cautiously.

Recommendation: Trade selectively
Support: 3013