PSE Overview of the Week

PSE Analysis:

Figure 1: Daily chart of PSE

PSE is still consolidating and trading with a trend strength of about 10.36 in slight favor for the upward trend. It is now extremely consolidating with a slightly positive momentum making it very much probable to an upward breakout. As long as momentum remains positive then PSE is still safe.

It is currently not overbought or oversold (Neutral). Expect mix readings for the different market sectors for the week.

About its volatility, I can say that it is somewhat on a horizontal line. Meaning to say many traders are still on a wait and see situation.

For its trend line, support and resistance. I can say that it is some what forming an ascending triangle pattern(bullish pattern). This is a good sign for its indicating that there is still some big probability for it to continue its upward trend. Its trend line major support is at 2,782.75 and it major resistance is at 2,923.21.

Support / Resistance:

Figure 2: Weekly chart of PSE

Looking at it support line we can clearly see that it is currently standing at the major support line of both the Fibonacci and S&R support line at 2,778.13. As long as this support line holds then PSE still some what OK for the current market trend.

Nearest resistance line before the next major big correction is at 3,172.64 for the Fibonacci resistance line and 3,052.34 for the S&R resistance line. From this we can conclude that near 3,100 will be the next probable big market correction.