PSEi Outlook for Apr. 10 – 13, 2012
The Philippine Stock Exchange Index (PSEi) remains bullish despite the lack of volume the past week due to Holy Week being the time when most traders would go on vacation. However, we shouldn’t drop our guard as the index is ready to test the support.
The 50-day moving average is now at 4917 and this would be our immediate support after the support line, now at 4996, that was made since October. With the index inching down to 5038, the support areas mentioned would now be more critical than ever to see if the trend would remain intact. The MACD lines have fallen a little further after the PSEi failed to make a new high and has now gone a little lower than last week.
With the Holy Week break over, we expect the traders to be coming back very soon to bring some life back into the market. We will then take note of how the market reacts when things go back to normal.
Recommendation: Hold
Support: 4996
