PSEi (Chart: Daily Resistance: 4747 Support: 4635/5460)
The index made history once again as it moved higher creating new high for the market. I was expecting the market to move downward last week, but bullishness sentiment was very evident that the index only had 2 days of downward movement and then continued creating new high.
One thing to look out for this current bull market is the possible formation of a negative divergence as can be seen in the RSI. We are now creating new high on the index, but the RSI is not in-synch and still hasn’t surpassed the previous high for the RSI. Also, I think we are now starting to form a rising wedge, a possible reversal signal, which is a bearish event.
For the succeeding days, exercise caution on buying stocks. I would recommend keenly observing the market and selling a portion when signs of weakness are detected on the stocks you currently hold.
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