PSEi Outlook for Nov. 21 – 25, 2011
Friday, November 18, 2011 19:12
The Philippine Stock Exchange Index (PSEi) is still staying above all the moving averages to close the week at 4302 yet this doesn’t mean that we should be bullish after wading through a choppy market.
The moving averages continue to oscillate within each other, only confirming what we already know; that the index is still forming a pattern. The setup of the moving averages isn’t even bullish yet therefore we really have to be careful with what we are doing in the market. The MACD has shown us that the fast line has lost some of its momentum to bring it closer to the slow line, therefore indicating that it is now close to correcting.
We are getting mixed signals every week from the indicators. The safest thing to do is to take your profits when you can because now is not the time to go long yet. We still need the index to break the all time high of 4563 and continue going higher otherwise we could just see another kind of bearish pattern that could form.
Recommendation: Take profits
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