Technical Overview on PSE
The shares of The Philippine Stock Exchange or PSE is gearing up for an upswing. As you can see from the chart, PSE had been trading in a sideways motion since February 2012 after falling from the high Php 500. In the process of its consolidation, it appears to have formed a cup and handle or a rounding bottom formation with Php 400 as its neckline. Last week, this neckline was breached and given the height of the pattern, it could potentially reach its minimum upside target of Php 450. If PSE continues to move higher after reaching the minimum upside target, its next stop may likely be its previous high of Php 500. On the other hand, if PSE goes back below Php 400, it could continue moving on a sideways motion.
