PSE Index Chart Analysis for the Week (February 27 to March 5, 2011)

Figure 1: PSE Index Chart

Last week our market index corrected just like what I am expecting it to do. Right now it is already at the previous trendline resistance (violet line) and is finding some area of support around ~3725. If this support holds, I am expecting the market to form a possible double bottom pattern. Good thing right now is that our market is already at the oversold area and the RSI is showing a possible bullish divergence. I have also observed that the markets downward momentum is getting weaker each weak. Hope our market will finally recover by March.