PSE Index Chart Analysis for the Week (June 12-18, 2011)

Figure 1: PSE Index Chart

With the recent big drop of DJI last Friday, I am expecting our index to still correct early in the week towards its up trendline or to its major support line around 4166 . My oscillator is telling me that the index is bottoming out for it is already at the oversold area. The RSI is also nearing its support line. In case the index breaks its major support line, I am expecting it to go down to as low as 4000 (target of the triple top pattern). Overall the index is moving sideways.