PSE Index Chart Analysis for the Week(June 30 to July 6, 2013)

Figure 1: PSE Index Chart

Last week the index break down below our TP1 and extended its correction, hitting approximately our TP2. This coming week I am expecting the index to correct and try to fill the 2 gaps shown in my chart. Some signs of possible bottoming of our index is already developing. RSI formed a bullish divergence pattern which possibly signalling an upcoming trend reversal. After the gap will be filled, I need to see also a higher swing low pattern or an inverted head and shoulder as another possible trend reversal signal before entering back to our market.