PSE Index Chart Analysis for the Week (May 8 to 14, 2011)

Figure 1: PSE Index Chart

Last week our market did not move up like what I am expecting it to do. This is mainly due to some unforeseen events such as consecutive triple digit drop of DOW during the last two trading days of the week.

Anyway, for this coming week I am expecting some market rebound possibly towards 4320. My indicator is telling me that the market is now at oversold level. Last Fridays candlestick pattern was also a hammer, which is a reversal pattern. But my major concern right now is if the market will not be able to break the 4320 then its possible that we may see a double top. The RSI has already shown some weakness by breaking down below its up trendline. Lets see what will happen during the week.