Last week, we wrote that the Philippine Stock Exchange Index (PSEi) will either move higher or it will return to the range and continue to consolidate.  True enough, the index returned to the trading range and continues to consolidate.  Let us be clear that this is neutral news.

PSEi has tested the 65-day moving average at 3214 before ending the week at 3265.  The index continues to be bullish even as it moves sideways since the setup of the 3 moving averages are still in the bullish mode.

The MACD confirms that we are in the midst of a consolidation as it is oscillating around the zero line.  There is no clear sign of bullishness or bearishness in the chart.

The prudent thing to do for this week is that we should be able to take our profits quickly and not be too quick to re-enter the market until a clear bullish signal is given.

Recommendation: Take profits
Resistance: 3338