Sunday, May 15, 2011

PSE Index Chart Analysis for the Week (May 15 to 21, 2011)

Figure 1: PSE Index Chart

Last week I mention of a possibility of our market forming a double top pattern. Last Friday's closing prove to be indicating that our pattern is not starting to unfold. The RSI was able to find some resistance along its previous trendline (red line). My take this coming week is that the market will try to consolidate/correct towards the 4135 to 4225 support. But since our market is not yet at overbought level, any correction during the week will be short leave and will not be strong enough to break the markets support lines. After the market corrects I am expecting it to finally break the 4320 resistance and head towards the 4400 to 4425 level.

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