PSEi Outlook for Apr. 4 – 8, 2011
Monday, April 4, 2011 8:49
There were a few significant events that happened in the Philippine Stock Exchange Index (PSEi) this past week. First was that the big rise in our index due to the huge deal between TEL & DGTL pushed the PSEi above the resistance of the downward channel that we were tracking. Second was the immediate reentry of the index back into the previous upward channel that it broke sometime January.
As the index broke the resistance of the downward channel, the first thing we noticed was that the 100MA was just above that at around 4005. On the day that we had the 100+ point rise, the PSEi finished just above the moving average at 4023. The index continued rising to bring itself above all the three moving averages and return inside the upward channel. The MACD has also shown us that we are now bullish with the current scenario as both lines are accelerating up above the zero line.
Since the market has gone sideways for roughly six months, many of the issues that we’ve been tracking are also consolidating. But now that the index has become bullish once again, we should watch out for those stocks that are now close to breaking out of their consolidation phase.
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