The Philippine Stock Exchange Index (PSEi) has set another all time high level at 4886 and it closed the week strong at 4880, giving us renewed confidence that the bullish trend will still continue.

With the index rising by another 114 points to end the week on a high note, traders were given that confidence boost to search for sleeper stocks that have yet to move and follow the general trend in the market.  As such, the PSEi still romps away from the moving averages, continuing the uptrend we’ve seen since October 2010.  The MACD may have tapered off a bit from the trend but we’re sure that it would follow the rise of the index very soon to confirm that the correction mode has already finished.

Given that the indicators are confirming to us all the bullish signals we are seeing, we maintain that our upside target for the index would still be at 5413.  Should things correct again, it should be safe to declare that 4800 would now serve as our psychological support while 4686 is the current support based on the trendlines we made.  If we’re still holding on to any winning positions, then this is a good time to hold them.  In case we’re still searching for the sleeper stocks that we mentioned earlier, one could be staring at us right now.  We just need to look closely.

Recommendation: Buy
Support: 4686