The PSEi continues to move higher despite the lack of leads in the market.  That’s the good news.  The bad news is that we seem to be just moving within a range.

At first glance, everything looks bullish after the index surpassed the level of 3133.  The moving averages are in the right setup.  The MACD is above zero.  So what seems to be the problem?  The volume has not been expanding that much.  That’s the reason behind my feeling that we are just moving sideways.

Another question that comes to mind is, if we are moving sideways, are we just continuing a trend or are we going towards a trend reversal?  That part is hard to answer at this point. There is not enough evidence to give us any indication of one situation or the other.  It’s more of a wait-and-see situation.

Despite that, there are selected opportunities still available.  It’s just a matter of knowing what they are and how to act on them.

Recommendation: Buy selectively
Resistance: 3325