PSEi Outlook of the Week

Figure 1. PSE Chart

Price and moving averages:

PSEi has closed below its Short time moving average.

Short time moving average is currently above mid-time, and above long time moving averages.
The relationship between price and moving averages is: neutral in short-term, and bullish in mid-long term.

Bollinger Bands:

PSEi has closed above bottom band by 22.1%.

Bollinger Bands are 17.0% narrower than normal.
The current width of the bands (alone) does not suggest anything conclusive about the future volatility or movement of prices.

Volatility:

50 day Historical Volatility is 15% (desired: greater than 40%).
6/100 day ratio Historical Volatility is 0.66 ( desired: less than 0.50). 

Trend Direction and Strength:
PSE has consolidated the past days and its trend strength is still weak.
Overall PSE is trending up with the tendency to move sideways.

Support/Resistance Lines:
Support: 3021 - 2971
Resistance: 3051 - 3092

Figure 2. Other technical indicators

RSI:

The RSI shows overbought (above 70) and oversold (below 30) areas.  The current value of the RSI is 42.36.  This is not a topping or bottoming area.    A buy or sell signal is generated when the RSI moves out of an overbought/oversold area.  The last signal was a sell 43 period(s) ago.

Stochastic:

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20).  The Stochastic Oscillator is 18.48.  This is an oversold reading.  However, a signal is not generated until the Oscillator crosses above 20  The last signal was a sell  4 period(s) ago.

MACD:

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. Currently the MACD is bearish since it is trading below its signal line. The last signal was a sell 1 period(s) ago.