PSE Index Chart Analysis for the Week (February 12 to 18, 2012)

 

Figure 1: PSE Index Chart

Last week the index consolidated above its minor resistance line and is presently forming what looks like to be a pennant. Approximate possible target of the pennant is the upper line of the channel. Despite the consolidation/correction of our index, its momentum remained strongly bias upward. RSI is somewhat finding some support at the 60 level. The index also entering the oversold area as indicated by my 2nd indicator above. This increases the likelihood of a continuation of its upward move in the near term.