Figure 1: PSE Index Chart
Sorry guys. There was no index chart update last week coz I was on a trip. As an update, the inverted head and shoulder pattern which I was mentioning the past weeks was already confirmed. Revealing possible target of approximately 7400.
As an alternative, using the harmonic analysis, we can clearly see that index is possibly forming a bearish bath pattern. Prize reversal area is around 7200.
Figure 2: Index potential Bearish Bat Pattern
Combining these two analysis, we can estimate the possible target of the current run of our index to be around 7200 to 7400.
For this coming week I am expecting the index to either continue consolidating or possibly even correct to ease out short term overbought condition. Upward momentum is slowing down. Take note also of the GAP which has the tendency of being filled up soon.
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