PSE Index Chart Analysis for the Week(October 13 to 19, 2013)

Figure 1: PSE Index Chart

The index continues to move sideways last week, tracing the path of our 20 MA(RED MA). It is now at overbought area and the 200 MA (GREEN MA) acting as resistance. I am expecting this week, that our index will try to fill that small gap and correct from being short term overbought. Momentum continues to be weak and slightly bias upward. I am assuming our index may be trying to form an squeeze effect in terms of volatility before heading up to 7,200.