PSEi Outlook for Mar. 8 – 12, 2010
Friday, March 5, 2010 21:55
The index pushed itself higher from the 65-day moving average, which is serving as a support at 3012, by ending the week at 3069.
Although the PSEi is now trending higher, I’m still not too sure if this is now the start of the bull run that everyone is waiting for. The only time I’ll probably be convinced that we are in the next bull run is when the recent high at 3133 is taken out convincingly and the index continues to trend higher. For the meantime, and from a conservative point of view, it’s trending higher for the short term.
The moving averages may be in an extreme bullish setup, but the MACD finally confirms that we are bullish for now as both fast & slow lines are above the zero line and trending upward.
With the current setup, there are selected opportunities that will present themselves. We shouldn’t hesitate to take them but we should also be careful at the same time.
Recommendation: Trade cautiously
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