Figure 1: PSE Index Chart
Last weeks market performance was a disappointment. My market expectation did not occur and a lot of chart patterns where also invalidated/distorted. As a recap, last week I was expecting the market to hold at the major support of 2007 high and also at the major trendline support. Unfortunately the market signaled a farther weakness on the market during the first few days of the week. It was not able to hold and break above the major trendline support of the market. My indicator also losses momentum as it was not able to break about 60. Add to this signs of weakness is the bullish divergence failure. With this signs it was clear enough that our market will going to drop. And indeed last Wednesday and most particularly last Thursday our market drop a big value.
For the coming week, I am expecting some market rebound due to the fact that the local index is nearing its oversold area. Once the index drops below this level there is going to be some big probability of a market rebound/reversal. Also the previous two candlestick patterns is indicating some possible bullish "Hit and Run" pattern. This pattern is for short term play.
The critical point or level to watch for our market is if drops below 3600. Dropping below that level will invalid our bullish AB = CD harmonic pattern and may signal some farther weakness on our market.
Figure 2: Trendline support was brokern
No comments:
Post a Comment