The Philippine Stock Exchange Index (PSEi) is still range trading as it keeps itself afloat.  However, it is not getting any better.

The index has managed to keep itself above the moving averages since November.  However, it is not improving since the PSEi hasn’t been making higher highs.  The MACD is also showing consolidation but the bearish divergence has not yet been negated.  We have already warned about this for some time.  Even if there are certain stocks to consider, we have to be careful in our trades as the index is not advancing.

The PSEi has retested recent highs made in October but it is not able to get past that area.  As such, it is possible that a double top has been made that would cause the index to fall should the support at 4211 be broken.  Be diligent in the coming new year and be alert when the bear market comes.

Recommendation: Take profits
Support: 4288