PSE Index Chart Analysis for the Week (October 30 to November 5, 2011)

Figure 1: PSE Index Chart

I am now getting an early "red flag" on our index. It gap up and closes right at a major resistance area. Gaps tend to get filled most of the time. Aside from that our index is also short term overbought. The index is currently forming a bearish "Doji Star" candlestick pattern, which can transition into either a bearish "abandoned baby", "evening doji star", or to a rare candlestick pattern known as the "tri star" pattern. I am cautious until our index can negate those patterns.