PSE Index Chart Analysis (January 20, 2017)

Since my last update few years ago I have projected that our index will hit 7640. So far that target was long been achieve. Currently our index is ranging around the 6000 to 8000 levels. I am seeing two bullish possibilities for our index right now.

Figure 1: Running Flat

First possibility is that our index is forming an elliot wave running flat. This is a bullish pattern that can indicate that our index will soon break the 8000 resistance.

Figure 2: Triangle

Another possible pattern is the triangle. This will happen when the index will fail to break the resistance around 8100. 

Both of my bullish counts will be invalidated when the area around 6400 or that lower line of the triangle is broken. Anyway, I prefer the triangle as a much higher probability for the two bullish counts. The main reason is the last drop is not very sharp and wave c have characteristics of being a killer wave.

I have also a bearish count for the index but will keep it for now. 

Good luck to our trades this year 2017!