PSE Index Chart Analysis for the Week(September 9 to 15, 2012)

Figure 1: PSE Index Chart

It seems our index will still take some time before reaching 5300. I am expecting our index to hit 5300 last week but did not materialize. The initial upward momentum of our index simply dried up during the week as it hit major resistance at t he confluence of 2 moving average( 20 (red) and 50 (blue) MA lines. I will be taking my signal as to where market will be heading in the next couple of days though my RSI indicator. A break of the RSI trendline (red line) will indicate upward move. While a breakdown below the RSI support (blue line) will indicate a downward move by our index.