PSEi Outlook for Aug. 6 – 10, 2012
The Philippine Stock Exchange Index (PSEi) was able to rise after consolidating in a falling wedge for around a month. It reached 5325 before trailing off a little below that once again.
It is quite clear that our trend Is still intact as we still see the index moving above the moving averages. At this point, the 50-day moving average at 5161 will act as our most immediate support. The other moving averages are also just coasting along together with how the index is trending. The MACD fast line has just crossed above the slow line but we need to see a stronger signal to be more confident of the bull run.
Until we see a bigger move, we have to be cautious about this current trend as it doesn’t look as strong as we want. More observation will have to take place.
Recommendation: Wait and see
Support: 5161
