Hold from Buying

PSEi

Recommendation: HOLD

Support: 7,006 – 6,851

Resistance: 7,250 – 7,300

• The PSEi lost 24-pts after some profit taking continued to press prices off Friday’s gap – also giving prices time to ease its disparity (overbought) to its short term averages

• As its trend still points up, a Hold is maintained but a careful watch over its support stop is necessary

• Some careful attention should also be placed over its weekly MACD readings as it seems to be quite vulnerable to a wider corrective potential... similar to what it demonstrated last year (in April to May 2012)

• Support is placed first between 7,006 the followed by 6,851

If you added capital, hold from buying. If support breaks, we need to watch where the new support will be.