Tuesday, July 5, 2011
PSEi: Heading towards new highs?
Obvious bearish divergence. If divergence is still present after 3 pushes to its high, take profits.
I am expecting a short term correction after breaking out of:
1) previous resistance - 4413
2)inverted head and shoulder pattern - target: 5095 (695 points); however, the pattern is too big to be deemed accurate so the index would either fall short or overshoot the target;
bulls are hoping to overshoot the target so everybody would be happy.
Breakout seems legit as the accompanying volume is exceptionally high(7+Bil TO) today
As for the short term correction, I am hoping for a shallow one so there would be more steam for the next leg.
Index weekly:
