The Philippine Stock Exchange Index (PSEi) has been trying time and again to break the resistance currently found at 3365 but still without success, at least, not the past week.  However, if we look at how the index has performed lately, we could see that it has been retesting the resistance at least 3 times and its perseverance may pay off soon.

Unlike the US market, the local index has been doing much better than its American counterpart.  The DJIA and the other major indices in the US have been performing under their respective moving averages which doesn’t give it a strong sign but locally, the PSEi has been doing very well as the index continues to stay above the 3 moving averages.  In fact, some can even view the PSEi to be traveling inside an upward channel and it’s now testing the resistance that we mentioned earlier.

The MACD also confirms that the local index is in a bullish mood as the lines continue to rise above the zero line.  So we have three signs that the PSEi is still doing good; retesting the resistance at 3365, index staying above the 3 moving averages, and the MACD continuing its rise above the zero line.

Should the index finally break through the wall at 3365, we could see it rise to an upside target of 3546.

Recommendation: Wait and see
Resistance: 3365