The Philippine Stock Exchange Index (PSEi) has achieved a new all time high of 4663!  And then it slumped from there.  We noticed that as the index was rallying to new heights, it backed off at 4591 initially because it hit the resistance of the long term trendline that we drew since March 2009.  This was immediately surpassed the following days as the market was pushed much higher on the massive buying of index issues.

As the PSEi continues to pull away from the moving averages, they are slowly establishing themselves to the bullish setup to confirm the current run.  The MACD on the other hand, has already surpassed the initial bearish divergence we saw since September 2010, thereby eliminating the bearish sentiment.  On both ends, bullishness prevails in the market.

The PSEi should continue going higher to solidify the renewed bullish sentiment existing at this moment.  In fact, it should rise by around 400 more points to authenticate the bull market that we are seeing.  In case, you are still liquid at this moment, bargains await you.

Recommendation: Buy
Support: 4400