PSE Index Chart Analysis for the Week (January 15 to 21, 2012)

Figure 1: PSE Index Chart

Last week our index has exceeded my expectation. Instead of correcting/consolidating to normalize its trend before heading up. Its momentum simply accelerated upward and was able to break both its major trendline resistance and its all time high resistance at 4563. This is a good sign for our market, it simply indicates that bulls have completely taken over the bears. The only drawback for now is that it is now overextended from our 20MA (red colored moving average) which increases the likelihood of a longer consolidation so that the moving average lines can cope up with the index.