PSE Index Chart Analysis for the Week (August 5 - August 13, 2011)

Figure 1: PSE Index Chart

Last week the market, finally broke the support line of our rising wedge and was able hit our estimated target (top of our previously drawn brodening top pattern). For this week, I am expecting the market to continue correcting towards 4358 or towards the blue colored trendline. Although there is a possibility of a market rebound. I am still cautious because the market momentum is starting to accelerate downward. Critical support to watch is the blue trendline. Once this is broken market may go down towards a target of about 4132 to 3887. I am expecting the entire correction to last for a minimum of three months.