PSEi Outlook for Mar. 15 – 19, 2010
Tuesday, March 16, 2010 20:55
In the first case, retesting the recent high of 3133 is what we expected. So we watched and waited for the index to push itself higher. In the second case, we now know that that level is a resistance level that needs to be broken in order for the PSEi to continue moving to higher levels. So it was like hitting a wall alright.
But despite the recent correction from the highs, we are still generally bullish as everything is showing us the correct setup. The index is above the 3 moving averages and the shortest MA is above the medium MA and that is above the longest MA. At the same time, the MACD has also risen above the zero line as expected in an uptrend situation.
The bigger question now is are we temporarily blocked from rising beyond 3133 or are we in the midst of a pattern that could possibly turn bearish?
Recommendation: Wait and see
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