The Philippine Stock Exchange Index (PSEi) has been practically following what the DJIA has been doing with a psychological resistance; which is it has been trying to get past that level but something keeps putting it back.

The 50 & 100-day moving averages are now racing towards the index and they are now confirming the bullishness in our trend.  The 50MA will now serve as our immediate support at 4743.  The MACD continues to drift sideways while slowly going down.  It probably only means that the PSEi is just passing through some correction phase before deciding on which trend to take.

Given that we’ve been flirting with the 5000 level for some time, we expect that this area will be breached soon again and hopefully it will stay above that level.  The only way for that to happen would be for the index issues to start appreciating also so it’s time to hunt for bargains.

Recommendation: Buy
Support: 4743