Last week’s ending for the PSEi didn’t look promising for the near term.  In the last two trading days, we lost around 50 points total.  Our latest problem is that the DJIA lost 125 points last Friday and chances are, the dip will spill over to our market.

Although the week ended higher as a whole, the biggest problem was how Friday ended.  The index made what looks like a bearish outside day.  What does this mean for us?  Although Friday had a higher high than Thursday, it also made a lower low and also closed lower.  This could be the start of a downtrend.

Should the PSEi retrace, we are still seeing 3130 as our immediate support.  Hopefully if we correct, it won’t be too far down.

Both the moving averages & MACD show bullishness.  But that could be short lived with the last trading day’s action.

Recommendation: Take profits
Support: 3130