PSEi Outlook for Apr. 30 – May 4, 2012
The Philippine Stock Exchange Index (PSEi) ended the week coming off a new all time high of 5247. It may be a bit disappointing but the uptrend is still very much intact.
The moving averages are tracking the trend of the index as it is going up side by side with the support line that was drawn since end of September. The MACD is slowly trying to recover from its recent correction but it looks to be doing it quite weakly. This may mean that the trend we have right now is not as strong as we think.
As the PSEi continues to rise, we have to follow the teaching that until the trendline has been broken, we have to assume that the trend is still in place. However, some of the signs we see say it may not be there for long. We would also have to remember that the summer months are usually when stocks become weak and at this point, it may be overdue for that.
Recommendation: Wait and see
Support: 5143
