PSEi Outlook for May 7 – 11, 2012
The Philippine Stock Exchange Index (PSEi) made a new all time high at 5329 but closed the week just slightly below 5300 at 5297. The good part that we see here is that there are no signs that the index is slowing down just yet.
The 50-day moving average is maintaining its momentum as it supports the trend at 5060 while the 100MA, at 4818, and 200MA, at 4546, also follows. The MACD has stopped dropping and may have started climbing once again but it’s not yet too clear for now. We’ll have to wait for a clearer picture.
A lot of people have been fretting that the index is already overbought or that it’s due for a correction soon. I find that these fears, although it may have some basis, are still a bit too early to come out. We have mentioned before that we are still waiting for the index to reach our target of 5413. Once that has been reached, we then will observe how things go from that point.
Here’s looking forward to more all time highs being made.
Recommendation: Hold
Support: 5175
