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

Figure 1: PSE Index Chart

After the double top pattern has failed last week, the index now seems to be consolidating on what seems to be a rectangular box pattern. It needs to break the resistance lines around 5115 to 5150. Its critical for the index to stay above its major trend line support, particularly above the 5000 support area. Else we may be able to see it go down to the box pattern target which is approximately 4840 to 4800. The index is also neither at overbought or oversold area and momentum is presently at neutral zone.