PSEi Outlook for Mar. 5 – 9, 2012
Sunday, March 4, 2012 15:44
The Philippine Stock Exchange Index (PSEi) has been flirting with the 5000 level for a few days the past week and was finally able to finish the week at its new all-time high of 5016!
The moving averages are confirming the uptrend in the index as it is now in the bullish setup where the 50-day moving average is at the support level of 4682. Strangely, the MACD has been on a steady decline since January. It could be possibly telling us that a correction is coming soon, unless the MACD lines will turn up soon to reflect the recent moves.
We still have the upward momentum for the moment but we should also prepare for the market correction anytime for the following reasons:
- We have been going up since December and there has been no major correction as of yet.
- Our market weakens at around March or April every year.
- Many issues have already been overbought for quite some time.
Taking these things into account might help keep us more careful in our trades.
Recommendation: Take profits
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