The Philippine Stock Exchange Index (PSEi) continues to trade within a tight range as we wait for a catalyst to push the index.

The index has been trading between the 50 & 100-day moving averages, and they have been serving as both resistance and support respectively.  The 50MA has been blocking attempts for the index to move higher at 4390, while the 100MA has been supporting the index at 4327.  All this time, the MACD has gone sideways with no signs of it making a clear direction.

Until the index breaks through the 50MA, we have to expect more consolidation from the PSEi.  However, that’s not to say that there won’t be any opportunities along the way.

Recommendation: Buy selectively
Resistance: 4390