PSE Index Chart Analysis for the Week (April 1 to 7, 2012)

Figure 1: PSE Index Chart

I am expecting the index to retest and try to break the resistance around 4145 this week. This is a critical resistance that the index needs to break in order to proceed higher. If the index can't break this level then we may be seeing a possible early development of a double top formation. I am anticipating a near top for the market given the divergence in price and RSI indicator. Aside from that I am seeing also some weakness with regards to its upward momentum last week.