After being wrong footed by the market when it posted that new high last week, I went back and studied the price action over the past month to determine where the index intends to go to next. Taking off from the spinning top last Friday, the two scenarios that seemed more likely than others are:
(A) Breakout of 3340 to 3440 (AB=CD move) after which it should retrace and move up again to whatever level.
(B) Correction off 3340, where it then correct steeply to the 3125-3150 range thus completing the potential Bullish Bat Pattern.
Personally, I prefer Scenario B instead of punching through 3340 and trending up again. A correction off 3340 to the aforecited range can potentially induce fear, and force weak handed investors to sell (again), allowing astute investors to pick up stocks cheaply and complete the consolidation by rallying off those levels.
I'm not too worried of any potential technical damage that this fourth correction may do to investors psyche. The market has shown its ability to rally off the support given ample liquidity in the system, and with the fundamental picture intact and supportive of domestic consumption and corporate earnings, it should be able to do so again.
But that's just me.
Comments as usual will be appreciated.
PS. I'm bored. Masyadong mahaba itong weekend na ito. Hehehe.