Tuesday, July 13, 2010

PSE Chart Analysis

Figure 1. PSE Price Chart

Finally our PSE Index has finally broken the RSI resistance that I had mention in my previous post. I'm expecting our market to go higher and possibly hitting the 3,600 level soon. I estimated this value by projecting the CD leg of the possible AB = CD harmonic pattern. 

Calculation: 3400-3100 = 300, then adding this to point C: 3300 + 300 = approx. 3600

I am expecting some market consolidation/correction as indicated by the Indicator Reading at the overbought area already.

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