After retesting the recent high the previous week, the PSEi just went sideways this week.  It’s still too early to tell if we are on our way to newer highs or we’re just about to form another top, making the current formation a bearish one.

As of the moment, the index is still doing okay as it is still above the 3 moving averages, although the 65-day moving average does seem to have slowed down.

The MACD is still bullish but the fast line has started to move below the slow line, indicating that we are in a correction mode.

Through all this, what looks troubling is that volume has not been expanding.  We’re not sure if this is because there are others who feel that they’re undecided about what to do with the market or they just have an early vacation mode as Holy Week is right around the corner.

In this kind of situation, the best thing for us to do would be to take our profits when we have it and not force any issue.

Recommendation: Take profits
Resistance: 3133